Unit 9 LP 2

Based on this information, which type of economy does Country X have?

• Country X has a pure command economy.

• Country X has a pure market economy.

• Country X has a traditional economy.

• Country X has a mixed economy.

Why do countries engage in specialization and trade?

• to protect their economies from foreign influences

• to gain control over the economies of other countries

• to earn the highest profits possible on goods they produce

• to obtain the goods and services they need in the most efficient way

Why is the modern Australian economy considered a mixed economy?

• The Australian government makes all economic decisions for its citizens.

• Economic decisions are made based on the decisions of Australians' ancestors.

• Australians are free to produce anything they want in any way they want.

• Individuals make most economic decisions but must follow government regulations.

What is necessary for international trade to occur?

• economic specialization

• investment in capital goods

• the use of tariffs and quotas

• a system of currency exchange

Australia's top two exports are iron ore and coal. One of its top imports is automobiles. Australia specializes in what?

• car manufacturing, because cars are in high demand.

• iron ore and coal, because most Australians are miners.

• iron ore and coal, because it has large supplies of these resources.

• car manufacturing, because it has the resources needed to make cars.

What role does the Australian government play in the nation's economy?

• The government strongly protects the rights of businesses.

• The government controls the energy and agricultural sectors.

• The government sets both prices of goods and wages for workers.

• The government determines production quotas businesses must meet.

What are the answers to the basic economic questions based on in a traditional economy?

• the interests of the government

• the forces of supply and demand

• the customs of older generations

• the availability of trading partners

In 2015, Indonesia decreased the amount of beef it would accept from Australia because it planned to raise cattle and produce its own beef. This is an example of

• a tariff.

• a quota.

• a sanction.

• an embargo.

Australia's main exports all come from the sector in which it specializes. What does Australia specialize in?

• banking

• logging

• manufacturing

• mining

If individual citizens of Country X decide what they goods want to produce and for whom they want to produce them, but some goods are produced and controlled by the government, then the economy of Country X is

• a pure command economy.

• a pure market economy.

• a mixed economy.

• a traditional economy.