Economic Developments of Europe: Test Review

People learned which plants to eat and how to care for animals from their ancestors.

What kind of economy does the society described in the text have?

• a mixed economy

• a pure command economy

• a pure market economy

• a traditional economy

What is a characteristic of pure market economies?

• The government controls major industries.

• The government discourages entrepreneurship.

• Production decisions are based on supply and demand.

What might cause Germany to move toward the left (more command) on the continuum?

• Taxes on imports were ❌ removed

• Laws were ❌ removed which decided what to produce.

• Laws were passed to protect consumers.

Which BEST describes the United Kingdom, Germany, and Russia?

• Though all are mixed economies, Russia would be closest to point 3 on the diagram.

• Though all are mixed economies, the United Kingdom would be between points 3 and 4.

What is a country that specializes in producing a certain good MOST LIKELY trying to do?

• import more of that good

• export (sell) more of that good to other countries

• reduce competition for that good

What does Germany specialize in?

• natural gas

• automobiles

• mining

• banking

If there is a high demand for steel and cars in both countries, which situation would MOST help Germany and Russia?

• Russia specializes in producing steel and Germany specializes in producing cars.

  The two countries engage in trade.

• Russia specialized in producing steel and Germany specializes in producing cars. The two countries do not engage in trade.

Under sanctions, no nations can trade. What is the BEST description of sanctions as an economic barrier to trade?

• The sanctions are an embargo.

• The sanctions are a quota.

• The sanctions are tariffs.

In order to protect its lumber industry, the European Union limits the amount of lumber that members can import each year.

What type of trade barrier is this an example of?

• an embargo

• a quota

• a tariff

What do you use to determine the price of your products in other nations?

• a common European currency is required for trading partners

• a system for exchanging currencies between countries

• a tariff with countries that are trading partners