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Europe Economics Voc.

Total questions: 25

Worksheet time: 14mins

Name
Class
Date
1.

A country that has aspects of a market economy plus a command economy is called a ___________.

a)

Traditional Economy

b)

Command Economy

c)

Market Economy

d)

Mixed Economy

2.

In which economic system are entrepreneurs MOST likely to exist?

a)

Command Economy

b)

Market Economy

c)

Traditional Economy

d)

Communist Economy

3.

What are the advantages and disadvantages of a command economy?

a)

The government provides for basic needs, but choice is limited.

b)

The government is not involved in production, consumption, or distribution. Many choices available

c)

Mix between government control and private business. Limited government regulation of industry.

d)

Businesses are based on tradition and choices are limited. People barter for goods.

4.

The diagram shows an economic continuum. Which letter on the continuum represents where a Pure Market economy would most likely be located.


<-----A------B------------------------------C---------------------------------D-->

Total Government No Government

Control Control

a)

A

b)

B

c)

C

d)

D

5.

Why is it important for a country to invest in human capital?

a)

All humans need capital to survive

b)

Starting your own business is good for the economy

c)

Countries that invest in the education and training of their people usually have a higher GDP

d)

Countries that invest in new technology and machinery produce more and have a higher GDP

6.

Which is an example of a quota?

a)

China allows only 345,000 Ford Mustangs into their country each year.

b)

China charges 7.9% tax on Ford Mustangs imported into their country.

c)

China refuses to buy Ford Mustangs from the USA.

d)

China puts a tax on all exports to the USA.

7.

Which is an example of an embargo?

a)

China allows only 345,000 Ford Mustangs into their country each year.

b)

China charges 7.9% tax on Ford Mustangs imported into their country.

c)

China refuses to buy Ford Mustangs from the USA.

d)

China puts a tax on all exports to the USA.

8.

Which is an example of an tariff?

a)

China allows only 345,000 Ford Mustangs into their country each year.

b)

China charges 7.9% tax on Ford Mustangs imported into their country.

c)

China refuses to buy Ford Mustangs from the USA.

d)

China puts a tax on all exports to the USA.

9.

What does it mean for a business to specialize in a particular good or service?

a)

Countries should import resources to produce their goods at higher prices.

b)

Countries should use their own resources to produce goods more efficiently and at lower prices.

c)

Countries should produce as many different things as they can. They should be good at everything.

d)

Countries should not worry about specialization because it leads to increased prices and less competition.

10.

Lisa started a small business selling t-shirts. She used her home as the place to start the business. She purchased the shirts from a company in Haiti. After selling a large amount of t-shirts, Lisa hired her cousins to help package and ship the t-shirts to customers.


In this scenario, Lisa would be an example of a(n) ________________.

a)

Entrepreneur

b)

Natural Resource

c)

Human Capital

d)

Physical Capital

11.

In this scenario, the cousins that helped package and ship the t-shirts are examples of _____________.

a)

Entrepreneur

b)

Natural Resource

c)

Human Capital

d)

Physical Capital

12.

The soil and water used to grow the cotton to make the t-shirts are examples of _________________.

a)

Entrepreneur

b)

Natural Resource

c)

Human Capital

d)

Physical Capital

13.

Which are examples of physical capital?

a)

Iron ore, silver, wood, diamonds.

b)

On the job training, public education.

c)

Technology, machinery, buildings, tools.

d)

Starting your own business or inventing something new.

14.

How does literacy rate affect standard of living?

a)

It has no effect.

b)

The lower the literacy rate the higher the standard of living.

c)

The higher the literacy rate the higher the standard of living.

d)

The higher the literacy rate the lower the standard of living.

15.

What is standard of living?

a)

The level of material comfort as measured by the goods, services, and luxuries available to an individual, group or nation.

b)

The level of goods measured by how many individuals, groups, or nations export each year.

c)

The measure of how long you live.

d)

The measure of how long you stay in school.

16.

What is Gross Domestic Product?

a)

The value of all goods and services imported into a country in a year.

b)

The value of all the services provided within a country in a year.

c)

The value of all goods produced in a country in a year.

d)

The value of all goods and services produced in a country in a year

17.
Why does Russia have such a high literacy rate but such a low Gross Domestic Product?
a)
Russians do not want a higher standard of living.
b)
Education is only required for boys, but girls may attend.
c)
There are too many jobs in manufacturing and not enough schools.
d)
The government has always required the children to be educated, but the economy is not as productive.
18.
Which of the following is NOT one of the three basic questions all economic systems must answer? 
a)
What goods should be produced ?
b)
What is the price of the goods? 
c)
How should the goods be produced? 
d)
Who gets to consume the goods? 
19.
What is one reason that a country could have a high GDP?
a)
Because they have high wages.
b)
Because they have a highly educated population.
c)
Because they have low taxes.
d)
Because they love going to space.
20.
What is a mixed economy?
a)
a market-based economy in which the government plays a role
b)
an economic system in which the people make all the economic decisions
c)
people who buy goods and services
d)
an economic system based on traditions
21.
A command economy occurs when the _________ is in control of all economic decisions.
a)
society
b)
government
c)
business owner
d)
market
22.
Actions in this type of economy relate to ritual, habit, and customs.
a)
Traditional
b)
Command
c)
Market
d)
Mixed
23.
Russia, Germany, and the United Kingdom all have what type of economic system?
a)
traditional
b)
command
c)
mixed market
d)
pure market
24.
What was the main purpose for the creation of the European Union?
a)
to eliminate trade barriers
b)
to establish trade barriers
c)
to eliminate free travel between countries
d)
to establish taxes
25.
___________ are goods and services sold to other countries
a)
imports
b)
exports
c)
tariffs
d)
embargos