European Economics Review

 What is the main purpose of the European Union?

• Require all European nations to adopt a command economy

• Create greater economic unity between European countries

• Create a large standing army for use around the world

• 1. Solve Europe’s environmental problems

Which type of trade barrier would guarantee that no child in the United Kingdom would be exposed to the deadly lead- based paint being exported from China?

• embargo

•  quota

• exchange rate

•  tariff

What do the economic systems of the United Kingdom, Germany, and Russia have in common?

• All are examples of pure market economies

• All are examples of mixed economies

• All are examples of traditional economies

• All are examples of pure command economies

What is the purpose of currency exchange?

• It creates trade barriers between countries

• It creates fairness for trade between countries

• It causes specialization of all products and services

• Human capital increases wage levels

Which of the following explanations would reflect a country with a mixed economy?

• Prices and wages are solely regulated by a country’s government

• A combination of privately-owned industry and government control

• A country’s distribution of resources is based on inheritance

• 1. Prices and wages are determined by the laws of supply and demand rather than being regulated by a country’s government

You are a small business owner and you sell computer gaming consoles. You have chosen to sell this product to teenagers and young adults. You decided to sell consoles because they are easy to build, are popular and make a high profit.  You decide on the prices for your consoles based ONLY on the following factors:
How many consoles do you have in your warehouse, and how many consoles do you sell each week?
Which type of economy do you have?

• traditional

• market

• command

• closed

What 3 economic questions are asked when studying the similarities of a traditional, command and market economy among nations of the world?

• What to produce, why to produce, when to produce?

• What is your opportunity cost, what economic resources are needed, why should these resources be used?

• What to produce, how to produce, and for whom to produce?

• What is your opportunity cost, why are economic resources needed, when should these resources be used?

Germany is building new factories and using newer technology. What are these examples of?

• Opportunity costs

• Gross domestic product

• Investment in human capital

• Investment in capital goods

Pierre is an auto mechanic in a nearby larger town. He has decided his own small town needs its own car repair shop. Pierre bought the building and opened his shop.  What would Pierre be an example of?

• entrepreneur

•  trade surplus

• gross domestic product

•  opportunity costs

As with any small island country, Ireland has fewer natural resources than countries such as Russia. How does this affect Ireland?

• Exports only manufactured products

• Should import fewer products

• Needs to import more products

• Does not import or export