SS7E2 and SS7E3 Review

Which trade barrier stops goods from being imported altogether?

• tariff

• quota

• embargo

Answer explanation

An embargo is a trade barrier that completely prohibits the import of goods from a specific country. Unlike tariffs and quotas, which regulate the amount or cost of imports, an embargo stops them altogether.

Which trade barrier limits the number of imports from another country?

• tariff

• quota

• embargo

Answer explanation

A quota is a trade barrier that specifically limits the quantity of imports from another country, unlike tariffs which impose taxes and embargoes which prohibit trade altogether.

True or false: In South Africa, Nigeria, & Kenya, the government controls some major industries.

• true

• false

Answer explanation

True. In South Africa, Nigeria, and Kenya, the government does control some major industries, such as energy and telecommunications, which reflects a level of state involvement in the economy.

Which trade barrier places a tax on imported goods?

• tariff

• quota

• embargo

Answer explanation

A tariff is a trade barrier that imposes a tax on imported goods, making them more expensive and less competitive compared to domestic products. This is why the correct answer is 'tariff'.

In most countries, people use ________ to get the things they need.

• currency

• bartering

Answer explanation

In most countries, people use currency as a standard medium of exchange to obtain goods and services. Bartering, while still practiced, is less common and not as efficient as using currency.

In which type of economy do people use bartering to get what they need?

• traditional

• command

• market

Answer explanation

In a traditional economy, people rely on bartering—exchanging goods and services directly—rather than using money. This system is often seen in communities where customs and traditions dictate economic activities.

Which of these is most like a market system?

• Government provides lots of services

• Individuals can start their own business & charge any price they want

• Government provides food & housing for all people

• Businesses are owned by the government

Answer explanation

A market system allows individuals to start their own businesses and set prices based on supply and demand. The correct choice reflects this freedom, unlike the other options which involve significant government control.

Specialization is when countries...

• concentrate on producing a narrow range of goods & services

• try to make everything they need on their own

Answer explanation

Specialization occurs when countries focus on producing a limited variety of goods and services, allowing them to increase efficiency and trade for other products, rather than trying to produce everything independently.

Nigeria has a mixed/command economy. Which resource does the government of Nigeria keep under their control?

• oil reserves

• heavy industry

• cattle production

• commercial agriculture

Answer explanation

The Nigerian government maintains control over oil reserves, which are a significant source of revenue for the country. This control is essential for managing the economy and ensuring that oil profits benefit the nation.

All of these are characteristics of a ___ economy.

· Decision making based on supply and demand.

· Adjusts to changes in the market place.

· Producers and consumers have control of the economy.

• command

• market

• socialist

• traditional

Answer explanation

A market economy is characterized by decision making based on supply and demand, the ability to adjust to market changes, and control by producers and consumers, making it the correct choice.