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WorksheetsUnit 4 Economics Review
Total questions: 32
Worksheet time: 16mins
Name
Class
Date
1.
Which of the following is an economic system in which economic decisions are made according to social roles & culture?
a)
Market economy
b)
Command economy
c)
Traditional economy
d)
Mixed economy
2.
Which of the following is an economic system in which individuals own and decide what to do with scarce productive resources?
a)
Market economy
b)
Command economy
c)
Traditional economy
d)
Mixed economy
3.
Which of the following is an economic system in which a central, governmental authority decides how to use a country's scarce resources?
a)
Market economy
b)
Command economy
c)
Traditional economy
d)
Mixed economy
4.
Which of the following is an economic system in which the government and individuals are used to decide how to use scarce resources?
a)
Market economy
b)
Command economy
c)
Traditional economy
d)
Mixed economy
5.
Investing in what 2 kinds of resources can increase a country's GDP & standard of living?
a)
Productive & capital resources
b)
Human & capital resources
c)
Natural & capital resources
d)
Human & natural resources
6.
What type of economy do most countries in the world have?
a)
Market economy
b)
Command economy
c)
Traditional economy
d)
Mixed economy
7.
What 2 things encourage international trade?
a)
Specialization & scarcity
b)
Specialization & trade barriers
c)
Trade barriers & scarcity
d)
Specialization & currency
8.
Producing a few types of goods & services instead of producing a wide variety of goods & services.
a)
Free trade
b)
Voluntary trade
c)
Specialization
d)
Over-specialization
9.
What is another term for trade between nations?
a)
Free trade
b)
International trade
c)
Voluntary trade
d)
Trade barrier
10.
What could be a possible effect of over-specialization?
a)
Embargos would increase
b)
Embargos would decrease
c)
The country's GDP would increase
d)
The country's GDP would decrease
11.
What 2 things made international trade easier?
a)
Currency & trade barriers
b)
Currency & exchange rates
c)
Exchange rates & trade barriers
d)
Currency & specialization
12.
Any action a government uses to control trade between countries.
a)
Free trade
b)
Voluntary trade
c)
Trade barrier
d)
Specialization
13.
When a country won't trade at all with another country.
a)
Embargo
b)
Quota
c)
Tariff
d)
Specialization
14.
An extra price added onto imported products.
a)
Embargo
b)
Quota
c)
Tariff
d)
Specialization
15.
A limit on how much of something may be imported into a country.
a)
Embargo
b)
Quota
c)
Tariff
d)
Scarcity
16.
To encourage consumers to buy from their own country and protect their country's businesses, a country might use this trade barrier.
a)
Specialization
b)
Embargo
c)
Quota
d)
Tariff
17.
To reduce the amount of goods imported from other countries, a country might use this type of trade barrier.
a)
Quota
b)
Embargo
c)
Tariff
d)
Specialization
18.
What is the purpose of OPEC?
a)
To impose tariffs on countries that are trading unfairly
b)
To keep peace between major oil producing countries
c)
To control the supply and price of oil from major oil producing countries
d)
To punish countries that impose embargos
19.
Why do people trade?
a)
They want to find out how much their currency is worth compared to another country's currency.
b)
They expect to be better off as a result of trade.
c)
They trade to increase scarcity.
d)
They trade so they don't have to barter.
20.
Japan mainly produces electronics & automobiles. This is an example of:
a)
Interdependence
b)
Specialization
c)
Trade barrier
d)
Exchange rate
21.
The U.S. limits the amount of Chinese tires that are imported every year to 21 million tires. This is an example of:
a)
Quota
b)
Tariff
c)
Embargo
d)
Scarcity
22.
The U.S. depends on Brazil for coffee and shoes. Brazil depends on the U.S. for computer equipment & chemicals. This is an example of:
a)
Trade barrier
b)
Specialization
c)
Interdependence
d)
Exchange rate
23.
Afghanistan has a literacy rate of 28%, while Jordan has a literacy rate of 90%. Which of the following is most likely true?
a)
Afghanistan & Jordan have the same standard of living.
b)
Jordan has a higher standard of living.
c)
Afghanistan has a higher standard of living.
d)
You can't make a prediction using this information.
24.
When countries rely on each other for resources, goods, and/or services.
a)
Interdependence
b)
Specialization
c)
Free trade
d)
Scarcity
25.
Why is it important for a nation to have a system to convert from one currency to another?
a)
Converting to different currencies makes goods cost less
b)
The dollar is the most valuable currency in the world
c)
Banks are not able to handle different types of currency
d)
This makes it possible to buy & sell goods with different types of money
26.
What is human capital?
a)
Taxes collected from a country's workers
b)
Money paid to workers for producing goods
c)
Skills and education workers have
d)
The amount of goods sold in foreign trade in a year
27.
What is the role of an entrepreneur?
a)
To satisfy the consumer's unlimited wants and decrease the GDP
b)
To satisfy consumer's unlimited wants and increase the GDP.
c)
To increase GDP and lower the literacy rate.
d)
To decrease GDP and increase the literacy rate.
28.
True or False: Countries with high literacy rates usually have a LOWER standard of living than nations with low literacy rates.
a)
True
b)
False
29.
True or False: Saudi Arabia's international trade in oil is made much easier by using a system to exchange currency between countries.
a)
True
b)
False
30.
True or False: Trade barriers make trading between countries easier.
a)
True
b)
False
31.
True or False: Countries with high literacy rates usually have a LOWER standard of living than nations with low literacy rates.
a)
True
b)
False
32.
How does oil production affect a country's GDP?
a)
Countries who produce more oil have a higher GDP.
b)
Countries who produce more oil have a lower GDP.
c)
Oil production has no impact on GDP.
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