Economics Quiz

What is a Market Economy?

• An economic model where the government makes all decisions

• An economic model where customs and history make decisions

• An economic model where supply and demand determine production

• A trade barrier that blocks all trade

In which type of economy do government planners make all business decisions?

• Market Economy

• Command Economy

• Traditional Economy

• Mixed Economy

What is a Traditional Economy based on?

• Government planning

• Supply and demand

• Customs, habits, and history

• Trade barriers

What does a Trade Barrier do?

• Encourages free trade

• Slows or blocks the exchange of goods and services

• Converts currency

• Measures GDP

What is a Tariff?

• A limit on imported goods

• A tax on imported goods

• A complete block on trade

• A type of currency exchange

What is the purpose of a Quota?

• To tax imported goods

• To limit imported goods

• To block all trade

• To convert currency

What is an Embargo?

• A tax on goods

• A limit on goods

• A complete block on trade

• A type of currency

What does Specialization focus on?

• A wide range of products

• A narrow range of products

• Currency exchange

• Trade barriers

What is Voluntary Trade?

• Trade with government control

• Trade with restrictions

• Free trade between partners

• Trade with high tariffs

What is Currency?

• A type of trade barrier

• A nation’s money

• A measure of GDP

• A type of resource