Economics and Trade Quiz

Which of the following countries has the most government control over its economy?

• India

• Japan

• South Korea

• North Korea

What is one effect of investing in capital goods?

• Lower worker productivity

• Increased unemployment

• Higher economic growth

• Decrease in GDP

Why is entrepreneurship important to an economy?

• It reduces consumer choice

• It creates jobs and promotes innovation

• It increases government regulation

• It discourages investment

What is one barrier India faces in improving its literacy rate?

• Lack of demand for education in cities

• Too much investment in schools

• Lack of schools in urban areas

• Gender inequality

A country with high investment in education and technology is likely to have:

• Low productivity

• Limited trade

• High GDP

• Traditional economy

What is a common reason countries use trade barriers?

• To support domestic businesses

• To increase consumer choice

• To eliminate exports

• To weaken their economy

Which country is known for thriving industries in technology and software services?

• China

• India

• Japan

• North Korea

What kind of economy does Japan have?

• Traditional

• Pure market

• Mixed

• Command

What is the benefit of currency exchange in trade?

• Stops other countries from trading

• Allows countries to use local money to trade

• Increases tariffs automatically

• Ends trade agreements

What happens if a country has a low literacy rate and unskilled workers?

• GDP will likely grow

• The economy will become stronger

• GDP may be limited

• There will be more investment in capital goods