Economic and Government Quiz

Why are most modern economies referred to as "mixed" economies?

• Poverty is always highest in countries with market economies

• Government planners do not know how to handle economic problems

• Products made by traditional economies have no markets in the modern world

• Most countries have all aspects of three economic types at work in their economies.

Which are MOST important in a command economy?

• Custom and habit

• Government Planners

• Consumers and the market

• A combination of consumers and government planners

What describes an official ban on trade with another country?

• Tax

• Tariff

• Quota

• Embargo

Those products a country makes best and are in demand on the world market.

• Specialization

• Trade Barriers

• Tariff

• Quota

Anything that slows down or prevents one country from exchanging goods with another.

• Trade barriers

• Specialization

• Human capital

• Entrepreneur

A way of limiting the amount of foreign goods that can come into a country.

• Tariff

• Quota

• Embargo

• Currency

A trade barrier in which one country announces that it will no longer trade with another country in order to isolate and cause problems with that country’s economy.

• Tariff

• Quota

• Embargo

• Specialization

The factories, machines, and technology that people use to make products to sell. Tangible items you can touch.

• A) Human capital

• B) Gross domestic product

• C) Capital goods

• D) Currency

The ability of the population of a country to read and write.

• GDP

• Literacy Rate

• Standard of Living

• Specialization

A tax placed on goods when they are brought into one country from another country.

• Trade Barrier

• Tariff

• Quota

• Specialization