European Economics

A product of the earth ('gift of nature') that people use to meet their needs is a

• Free enterprise

• Good

• Natural resource

• Traditional economy

The number limit on how many items of a particular product can be imported from a particular country is the

• Supply

• Demand

• Quota

• Traditional economy

The economic system of communist countries is most closely related to which of the following?

• Mixed economy

• Market economy

• Command economy

• Traditional economy

Which of the following is NOT one of the basic questions that all economic systems must answer?

• How much to produce?

• How to produce?

• What to produce?

• For whom to produce?

A market economy is very different from a command economic system or a traditional system. Which of the following is found in a market economy?

• Competition between businesses

• Government control of agriculture

• Market

• Service

In a command economy, economic decisions are made by the

• Producers

• Market

• Government

• Service

Which is an example of investment in human capital?

• Education

• Factories

• Dollar

• Euro

What is the form of currency that is mandatory to use for any country joining the European Union?

• Pound

• Franc

• Dollar

• Euro

How are goods and services exchanged in a traditional economy?

• Through government regulation

• Through bartering

• Through shortages and surpluses

• Through prices and wages

Which trade barrier sets up a complete ban on trading between countries?

• Embargo

• Tariff

• Quota

• Mountain