G8U7 CSA Review

Example: Economic system where traditional farming methods are being replaced by modern machinery.

• mercantile

• command

• traditional

• mixed

Consider the scenario below. In Country Z, the government owns all of the factories and guarantees that every citizen has a job. The government also provides low-cost health care to every citizen and makes sure that all children receive an education up to the end of high school. In this scenario, which action would move Country Z closer to a market-based economy?

• selling government-owned factories to private investors

• increasing taxes to provide a free college education for every citizen

• charging tuition for public schools to cover the costs of educating the population

• increasing the cost of health care services to make the government more profitable

Which type of economy is most common in today’s world?

• command

• traditional

• market

• mixed

Which statement describes the problem created by scarcity?

• Every economic decision results in losing the costs of other opportunities.

• People have wants and needs that cannot be fulfilled with limited resources.

• Every producer must decide between making goods and providing services.

• Innovation and technology help people make more efficient use of natural resources.

In theory, command-oriented economies are better than market-based economies at pursuing which goal?

• providing opportunities to entrepreneurs

• utilizing natural resources efficiently

• creating incentives to modernize

• equalizing the wealth of citizens

The 4th amendment most directly reveals the Constitution's commitment to

• preserving profit motive

• protecting private property

• maintaining economic stability

• promoting interstate commerce

Examine the graph below.

• Profit motive decreases.

• There is a surplus of goods.

• There is a shortage of goods.

• Market equilibrium is reached.

Which term is a type of economic trade barrier?

• Embargo

• Trade zone

• Globalization

• Scarcity

Which example best depicts the philosophy of Protectionism?

• Sweden increases its specialization.

• Japan keeps sales taxes low for consumers.

• Cuba reduces the use of scarce natural resources.

• Russia prevents problems resulting from foreign competition.

Which statement explains how global trade can increase wealth in nations that trade with one another?

• Trade immunizes nations from the effects of economic crises.

• Trade allows countries to improve efficiency and increase sales.

• It is easier for nations that trade to conserve their natural and human resources.

• Global prices are higher than domestic prices because of the cost of transportation.