Economics Vocabulary Test Study Guide

What is bartering?

• A system of exchange using money

• A system of exchange using credit

• A system of exchange where goods/services are traded without money

• A system of exchange using digital currency

In a command economy, who makes all business and financial decisions?

• Private citizens

• Government planners

• International organizations

• Local businesses

What does an economic system determine?

• The color of currency

• The type of government

• What goods/services are produced, how, and for whom

• The population size

What is entrepreneurship?

• The ability to create new businesses independently

• The ability to manage government funds

• The ability to trade internationally

• The ability to work in a team

In a market economy, what determines what is produced and consumed?

• Government oversight

• Laws of supply and demand

• Historical customs

• International treaties

What is a traditional economy governed by?

• Technology

• Custom, habit, and history

• Government policies

• Market trends

What does a mixed economy blend?

• Technology and agriculture

• Market, command, and traditional economies

• Local and international markets

• Public and private sectors

What is specialization?

• Focusing on a wide range of products

• Focusing on a narrow range of products/services produced efficiently

• Focusing on international trade

• Focusing on digital services

What is voluntary trade?

• Trade enforced by government

• Trade where both partners agree to exchange goods/services

• Trade limited to local markets

• Trade using only digital currency

What does a boycott involve?

• Purchasing more goods from a specific company

• Refusal to purchase goods/services from a specific company or country

• Promoting goods from a specific company

• Investing in a specific company