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Economies of Europe

Total questions: 20

Worksheet time: 17mins

Name
Class
Date
1.

Which is not one of the three economic questions that every country must answer?

a)

What to produce?

b)

How to produce?

c)

For who to produce?

d)

How to consume?

2.
Why do countries specialize?
a)
Because no country has all of the resources necessary to produce all the good its animals need
b)
Because all countries have all of the resources necessary to produce all the good its people need
c)
Because no country has all of the resources necessary to produce all the good its people need
d)
Because no country has none of the resources necessary to produce all the good its people need
3.
How does a command economic system answer the 3 economic questions
a)
Government makes all decisions
b)
Government makes some decisions
c)
Government makes no decisions
d)
Government makes all choices for citizen lives
4.

What type of economic systems are mostly found in Europe?

a)

Most of them are primarily market economies with elements of command economies

b)

Most of them are nearly pure market economies, and the rest are command economies

c)

Most of them are command economies, and the rest are nearly pure market economies.

d)

Most of them are primarily command economies with elements of market economies

5.
What type of economic system is found in Russia 
a)
Mixed, moving away from command since 1991 
b)
Market, moving away from command since 1961 
c)
Mixed, moving away from traditional since 1991 
d)
Mixed, moving away from socialism since 1989 
6.

How do investments in human capital help improve a nation's economy?

a)

by reducing competition between businesses

b)

by improving access to natural resources

c)

by improving the job skills of the population

d)

by reducing the efficiency of production

7.

In a market economy, economic decisions are based on

a)

What previous generations produced

b)

What resources are available

c)

What the government says

d)

Supply and Demand

8.
A limit on imported goods is  _____________________ 
a)
a tariff
b)
a quota
c)
an embargo
d)
a lemonade stand
9.
Tax on imported goods is ___________
a)
a tariff
b)
a quota
c)
an embargo
d)
the reason we can't have nice things
10.

When a country completely stops trading with another country, it's called ____________________

a)

a tariff

b)

a quota

c)

an embargo

d)

a hissy fit

11.

Which of the following best completes boxes 1 and 3 in the chart in order of how restrictive the trade barriers are?

a)

Box 1 is Embargo and Box 3 is Tariff

b)

Box 1 is Inflation and Box 3 is GDP

c)

Box 1 is Tariff and Box 3 is Embargo

d)

Box 1 is Opportunity Cost and Box 3 is Specialization

12.
Government policies that restrict or stop the flow of goods and services among countries.
a)
Trade
b)
Shortage
c)
Trade Barrier
d)
Scarcity
13.

Trading without anyone forcing you to do so is one of the main economic reasons for the creation of the EU and the elimination of trade barriers. Which of the following best represents this idea?

a)

Voluntary Trade

b)

Embargo

c)

Trade Barrier

d)

Import

14.

Which is NOT one of the 4 Factors of Production or Economic Growth?

a)

Business Resources

b)

Capital Resources or Goods

c)

Human Capital

d)

Natural Resources

e)

Entrepreneurship

15.

How did adopting the euro help European Union member-states?

a)

It created another barrier to trade with nonmembers.

b)

It eliminated the costs of currency exchange

c)

It allowed member-states to economically specialize.

d)

It stopped the fluctuation of currency values

16.

Germany's literacy rate is 99%. Based on this information, what can be concluded about Germany?

a)

Germany has a low standard of living

b)

Germany has a low gross domestic product.

c)

Germany's businesses have valuable capital goods.

d)

Germany's workforce has valuable human capital.

17.

Why is it economically important for the United Kingdom to maintain its 99% literacy rate?

a)

Educated workers are more efficient, leading to a more productive workforce.

b)

Educated workers are often paid less, because employers do not have to train them.

c)

Educated workers are more efficient, leading to decreased demand for capital goods.

d)

Educated workers are often paid less, because employers had to pay for their training.

18.

What are Capital Goods?

a)

Finished goods ready to be bought and sold

b)

The effort and labor of trained and skilled workers

c)

The goods that are used to produce finished products and services

d)

Minerals and natural materials used to create finished goods.

19.

If a country invests more into its Human Capital, its likely to see its ____________ rate increase.

a)

Acceptance

b)

Literacy

c)

Market

d)

Currency

20.

What information do exchange rate tables provide?

a)

the type of economic system present in each country

b)

the type of government system present in each country

c)

the value of each country's' currency relative to each other

d)

the value of each country's per capita gross domestic product