UNIT 2: Economics Quiz

What is the definition of an economy?

• The process of manufacturing goods and services.

• The process of importing and exporting goods.

• The organized way a nation provides for the needs and wants of its people.

• The system of government in a country.

What are the factors of production?

• GDP, Inflation, Unemployment, Interest Rates

• Imports, Exports, Tariffs, Quotas

• Supply, Demand, Price, Competition

• Land, Labor, Capital, Entrepreneurship

What is scarcity?

• The equal distribution of wealth among the population.

• The government's control over the economy.

• The surplus of goods and services in the market.

• The difference between what consumers want and need and what the available resources are.

Which economic system is characterized by government control of production and distribution?

• Traditional Economy

• Market Economy

• Command Economy

• Mixed Economy

What is the purpose of an embargo?

• To impose a total ban on specific goods coming into and leaving a country.

• To establish economic policies that restrict imports to protect domestic industries.

• To raise the price of imports to encourage consumers to buy locally made goods.

• To limit the quantity or monetary value of a product that may be imported.

Which trade agreement includes the United States, Canada, and Mexico?

• North American Free Trade Agreement (NAFTA)

• World Trade Organization (WTO)

• European Union (EU)

• Asian Free Trade Agreement (AFTA)

What is the difference between imports and exports?

• Imports are goods and services purchased from other countries, while exports are goods and services sold to other countries.

• Imports are goods and services sold to other countries, while exports are goods and services purchased from other countries.

• Imports are goods and services produced domestically, while exports are goods and services produced internationally.

• Imports are goods and services sold to other countries, while exports are goods and services purchased from other countries.

What is the main goal of the European Union (EU)?

• To maintain competitive practices and environmental standards.

• To create a single European currency and central bank.

• To provide security and maintain safety standards.

• To establish free trade among its member nations.

What is the purpose of a tariff?

• To impose a total ban on specific goods coming into and leaving a country.

• To raise the price of imports to encourage consumers to buy locally made goods.

• To limit the quantity or monetary value of a product that may be imported.

• To establish economic policies that restrict imports to protect domestic industries.

What is the balance of trade?

• The difference in value between a nation's exports and its imports.

• The total amount of goods and services produced in a country.

• The amount of money a country owes to foreign entities.

• The total revenue generated from international trade.