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Unit 9 LP 2

Total questions: 18

Worksheet time: 9mins

Name
Class
Date
1.

Based on this information, which type of economy does Country X have?

a)

Country X has a pure command economy.

b)

Country X has a pure market economy.

c)

Country X has a traditional economy.

d)

Country X has a mixed economy.

2.

Why do countries engage in specialization and trade?

a)

to protect their economies from foreign influences

b)

to gain control over the economies of other countries

c)

to earn the highest profits possible on goods they produce

d)

to obtain the goods and services they need in the most efficient way

3.

Why is the modern Australian economy considered a mixed economy?

a)

The Australian government makes all economic decisions for its citizens.

b)

Economic decisions are made based on the decisions of Australians' ancestors.

c)

Australians are free to produce anything they want in any way they want.

d)

Individuals make most economic decisions but must follow government regulations.

4.

What is necessary for international trade to occur?

a)

economic specialization

b)

investment in capital goods

c)

the use of tariffs and quotas

d)

a system of currency exchange

5.

Australia's top two exports are iron ore and coal. One of its top imports is automobiles. Australia specializes in what?

a)

car manufacturing, because cars are in high demand.

b)

iron ore and coal, because most Australians are miners.

c)

iron ore and coal, because it has large supplies of these resources.

d)

car manufacturing, because it has the resources needed to make cars.

6.

What role does the Australian government play in the nation's economy?

a)

The government strongly protects the rights of businesses.

b)

The government controls the energy and agricultural sectors.

c)

The government sets both prices of goods and wages for workers.

d)

The government determines production quotas businesses must meet.

7.

What are the answers to the basic economic questions based on in a traditional economy?

a)

the interests of the government

b)

the forces of supply and demand

c)

the customs of older generations

d)

the availability of trading partners

8.

In 2015, Indonesia decreased the amount of beef it would accept from Australia because it planned to raise cattle and produce its own beef. This is an example of

a)

a tariff.

b)

a quota.

c)

a sanction.

d)

an embargo.

9.

Australia's main exports all come from the sector in which it specializes. What does Australia specialize in?

a)

banking

b)

logging

c)

manufacturing

d)

mining

10.

If individual citizens of Country X decide what they goods want to produce and for whom they want to produce them, but some goods are produced and controlled by the government, then the economy of Country X is

a)

a pure command economy.

b)

a pure market economy.

c)

a mixed economy.

d)

a traditional economy.

11.

Why would a country impose a tariff or a quota on imported automobiles?

a)

to increase government tax revenue

b)

to conserve valuable natural resources

c)

o lower automobile prices for consumers

d)

to protect the domestic automobile industry

12.

Most countries have economic systems that can be described as

a)

mixed

b)

traditional

c)

pure market

d)

pure command

13.

Why would the economy of the Aboriginal peoples of Australia have been considered a traditional economy before contact with European civilizations?

a)

All economic decisions were made by a central governmental authority.

b)

The forces of supply and demand determined what would be produced.

c)

A group of elders in each community set the prices at which goods were sold.

d)

They based their economic activities on the economic activities of their ancestors.

14.

Why is a system of currency exchange necessary for countries to trade with one another?

a)

because most countries specialize in different goods

b)

because most countries use different forms of money

c)

because most countries have different types of economies

d)

because most countries possess different natural resources

15.

What is one benefit of a mixed economy over a pure market economy?

a)

In mixed economies, taxes are often very low because the government does not provide any public goods.

b)

In mixed economies, the government is able to allocate all resources and make sure that they are used efficiently.

c)

In mixed economies, the market determines the prices of all goods and guarantees that they are produced efficiently.

d)

In mixed economies, government regulations can reduce the negative effects of business activities such as pollution.

16.

What role do natural resources play in Australia's economy?

a)

Australia controls all of the natural resources that it needs, so it imports very few products.

b)

The Australian government controls the country's natural resources by setting prices and quotas.

c)

Australia has many valuable natural resources that it produces and exports to other countries.

d)

Australia depends on the import of natural resources, leaving it vulnerable to price changes.

17.

What is the economy of Australia?

a)

a pure market economy

b)

a pure command economy

c)

a market-leaning mixed economy

d)

a command-leaning mixed economy

18.

What type of information can be obtained from currency exchange rates?

a)

the standard of living within a country

b)

the level of employment within a country

c)

the volume of trade between one country and another

d)

the value of one country's money in terms of another's