European Economics Review

Germany combines two things: a market system (free enterprise and competition), and some state control. Sounds like Germany has

• a pure market economy

• a pure command economy

• a mixed economy

• a semi-traditional hybrid economy

A tariff is a tax on

• Exports

• Imports

• Food

• Services

How does the geography of the United Kingdom impact trade?

• Countries are reluctant to trade with a nation that is so far north

• It is part of Europe that cannot be reached during the winter months

• Other nations are too far away and cannot trade with them on a regular basis

• It can be more expensive to import and export goods because it is an island nation

In a traditional economy, the decision to make (or not to make) certain products is decided MOSTLY by

• Customs

• Entreprenuers

• Government

• Producers

Which statement is PRIMARY chararcteristic of a capitalist system?

• Graduated income tax

• Private ownership of property

• Equal distribution of resources

• Governmental regulation of business

Germany is MOST likely to export which of these?

• Cars

• Clothing

• Food

• Steel

Imposing some sort of cost on trade that raises the price of the traded product is MOST LIKELY an example of

• A trade barrier

• A trade surplus

• A trade defcit

• A trade incentive

A tariff is a form of taxation on foreign products, while a quota is a ____ on imports from foreign countries.

• Boost

• Increase

• Limit

• Rise

Increased education and training within a nation will most likely result in

• a decrease in entrepreneurship

• a decrease in Gross Domestic Product (GDP)

• an increase in Gross Domestic Product (GDP)

• an increase in the presence of natural resources

All of these are found in a market economy EXCEPT

• supply and demand as a system of regulation

• government control as a system of regulation

• environmental controls

• freedom to won private businesses