Economic Understandings

What is the goal of an embargo?

• To improve the development of industries

• To protect domestic industry

• To punish another country by suspending trade

• To slow down economic growth

What is a quota?

• A tax placed on exports

• A limit on the amount of a foreign good that can be imported

• A ban on trade with a particular country

• A regulation on domestic goods

What is a tariff?

• A limit on the amount of a foreign good that can be imported

• A ban on trade with a particular country

• A tax placed on imports

• A regulation on domestic services

What are trade barriers?

• Measures to improve economic prosperity

• Anything that slows down or prevents one country from exchanging goods with another

• Policies to enhance the knowledge and skills of workers

• Laws to increase the development of industries

What is the goal of an official ban on trade with a particular country?

• To promote a social good or an economic policy

• To protect domestic industry

• To punish another country by suspending trade

• To distribute limited resources

What does specialization refer to in an economic context?

• The range of economies from pure market systems to pure command systems

• The improvement of living standards by economic growth

• The products a country makes best and that are in demand on the world market

• The limited quantities of resources to meet unlimited wants

What is scarcity in economic terms?

• The improvement of living standards by economic growth

• The products a country makes best and that are in demand on the world market

• The range of economies from pure market systems to pure command systems

• Limited quantities of resources to meet unlimited wants

What does it mean to allocate resources?

• To improve living standards by economic growth

• To set apart or designate for a special purpose; to distribute

• To place an official ban on trade with a particular country

• To promote a social good or an economic policy

What term is used to describe the basic physical and organizational structures needed for the operation of a society or enterprise?

• Private sector

• Subsidies

• Infrastructure

• Industry

What does the private sector refer to in the context of a national economy?

• The part of the economy under direct government control

• The basic physical and organizational structures needed for society

• The part of the economy that is not under direct government control

• The act of economically punishing another nation