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WorksheetsEuropean Economics Review
Total questions: 103
Worksheet time: 54mins
How does a traditional economy make economic decisions?
Customs and beliefs
Government decides
Private businesses decide
Private businesses decide, but the government regulates
Most democratic countries have which type of economic system?
Command
Traditional
Mixed
Market
How do Russia's harsh climate, size, and few navigable rivers affects its economic development?
Russia can easily transport goods to any country.
Russia is the richest nation on earth.
The land in Siberia is very easy to farm.
Russia's natural resources are difficult to use.
Why is it important for a country to invest in human capital?
The country needs money to pay its workers. .
Workers enjoy getting extra training and job opportunities.
A country's economy is much stronger when workers have a good education and health care
Businesses can't do all the training needed by workers to be successful.
What is an entrepreneur?
A leader of a country.
A worker in a factory.
A person who starts a new business
A student in college.
Germany limits the amount of wool suits that Ireland can ship to them. This type of trade barrier is called a (an)
Tarriff
Quota
Embargo
What is the main purpose of the European Union?
Require all European nations to adopt a command economy
Create greater economic unity between European countries
Create a large standing army for use around the world
Solve Europe’s environmental problems
What do the economic systems of the United Kingdom, Germany, and Russia have in common?
All are examples of pure market economies
All are examples of mixed economies
All are examples of traditional economies
All are examples of pure command economies
Which of the following explanations would reflect a country with a mixed economy?
Prices and wages are solely regulated by a country’s government
A combination of privately-owned industry and government control
A country’s distribution of resources is based on inheritance
Prices and wages are determined by the laws of supply and demand rather than being regulated by a country’s government
You are a small business owner and you sell computer gaming consoles. You have chosen to sell this product to teenagers and young adults. You decided to sell consoles because they are easy to build, are popular and make a high profit. You decide on the prices for your consoles based ONLY on the following factors:
How many consoles do you have in your warehouse, and how many consoles do you sell each week?
Which type of economy do you have?
traditional
market
command
closed
What 3 economic questions are asked when studying the similarities of a traditional, command and market economy among nations of the world?
What to produce, why to produce, when to produce?
What is your opportunity cost, what economic resources are needed, why should these resources be used?
What to produce, how to produce, and for whom to produce?
What is your opportunity cost, why are economic resources needed, when should these resources be used?
Germany is building new factories and using newer technology. What are these examples of?
Opportunity costs
Gross domestic product
Investment in human capital
Investment in capital goods
Pierre is an auto mechanic in a nearby larger town. He has decided his own small town needs its own car repair shop. Pierre bought the building and opened his shop. What would Pierre be an example of?
entrepreneur
trade surplus
gross domestic product
opportunity costs
You are watching a speech by the Prime Minister of Great Britain on T.V. with your parents. The Prime Minister is explaining a plan for improving the British economy. In the speech, the Prime Minister says:
“Our workers must be prepared for the high-tech jobs of the 21st century. My plan will give incentives to companies who provide technology education and training for their employees.”
What is the conclusion of the Prime Minister’s plan?
An investment in human capital will increase the country’s gross domestic product (GDP).
Adjusting the exchange rate will increase the profit that Great Britain makes in international trade.
An investment in capital goods will increase the country’s gross domestic product (GDP).
An embargo on technology from other countries will help the British economy.
You are watching a speech by the Prime Minister of Great Britain on T.V. with your parents. The Prime Minister is explaining a plan for improving the British economy. In the speech, the Prime Minister says:
“Our workers must be prepared for the high-tech jobs of the 21st century. My plan will give incentives to companies who invest in new computers and wireless communications systems.”
What is the conclusion of the Prime Minister’s plan?
An investment in human capital will increase the country’s gross domestic product (GDP).
Adjusting the exchange rate will increase the profit the British makes in international trade.
An investment in capital goods will increase the country’s gross domestic product (GDP).
Tariffs placed on technology from other countries will help create larger computer companies.
You are watching a speech by the Prime Minister of Great Britain on T.V. with your parents. The Prime Minister is explaining a plan for improving the British economy. In the speech, the Prime Minister says:
“Our economy is too dependent on imports of oil from foreign countries. My plan for energy independence will focus on using sources of energy we already have here in Great Britain—including oil & natural gas, wind, and solar power.”
What is the conclusion of the Prime Minister’s plan?
An investment in human capital will increase the country’s gross domestic product (GDP).
A tariff on oil imported from other countries will double Great Britain’s oil production.
An investment in capital goods will increase the country’s gross domestic product (GDP).
The development and use of domestic natural resources will help the British economy.
You are watching a speech by the Prime Minister of Great Britain on T.V. with your parents. The Prime Minister is explaining a plan for improving the British economy. In the speech, the Prime Minister says:
“We must make it easier for citizens of Great Britain to open small businesses. My plan will give tax breaks and incentives to British citizens who want to start their own small business...”
What is the conclusion of the Prime Minister’s plan?
Investing in human capital will increase the country’s gross domestic product (GDP).
Promoting entrepreneurship will improve economic development.
Investing in capital goods will increase the country’s gross domestic product (GDP).
A tariff on goods imported from other nations will help British businesses compete.
How does the European Union positively affect the economies of Europe?
refusing to allow countries to trade with each other
allowing England to become the richest European country
lowering or eliminating barriers that slow down trade between countries
Making taxes on imported goods higher and promoting economic independence
If a country imposes a barrier (such as tariffs) against imports what is likely to happen to the price and amount of imported goods?
the price decreases and quantity imported increases
trade barriers have no effect on price or quantity of goods
the price rises and the quantity imported decreases
the price decreases, and quantity imported decreases
What type of trade barrier stops trade completely?
quota
tariff
embargo
delta
What type of economy does the government decide how much of a product should be made, the materials it will be made from, and who will distribute it?
Traditional
Specialized
Market
Command
What economy is run by the government?
Command
Market
Traditional
Mixed
What economy is run by supply and demand?
Command
Market
Mixed
Traditional
What economy is based on traditions and customs?
Command
Market
Mixed
Traditional
What is a tax on imported goods?
Tariff
Quota
Sanction
Subsidy
What type of economy is made up of a command and market economy?
Sector Economy
Traditional Economy
Mixed Economy
Demand Economy
What describes the line which shows how much a mixed economy is either command or market?
Generator
Central Line
The Prime
Continuum
Which one of these describes why countries trade with other countries?
To help other countries
Lack of natural resources
Autocratic government force them to
Most countries do not trade
What word describes a country being able to produce a good faster and better than another country?
Distribution
Consumption
Production
Specialization
What is a limit on the amount of a foreign good that can be imported?
Tariff
Quota
Subsidy
Embargo
What is someone who takes risks in order to start a new business?
Capital Goodman
Entrepreneur
Autocratic
World Traveler
Schools and job training best describes which one of these?
Capital Goods
Human Capital
Entrepreneur
Investing
What word describes machinery and factories?
Human Capital
Entrepreneurs
Capital Goods
Economic Peace
Only 500 pencils are allowed to be sold in a country? What word describes this situation?
Quota
Sanction
Tariff
Embargo
What is a trade barrier?
Anything the government does to limit trade
Specialization
Something that prohibits travel
A social injustice
What type of economy do the United Kingdom,
Germany, and Russia all have?
pure market economy
traditional economy
mixed economy
pure command economy
How are the economies of the United Kingdom,
Germany, and Russia different?
The German economy is more command-
leaning than the UK and Russian economies.
The Russian economy is more market-leaning
than the UK and German economies.
The German economy is more market-leaning
than the UK and Russian economies.
The Russian economy is more command-
leaning than the UK and German economies.
Germany specializes in the production of
automobiles. Based on this information, which
statement is MOST LIKELY correct?
Germany sells automobiles to domestic
consumers for very low prices.
Germany has a low gross domestic product and
high unemployment.
Germany has no natural resources that other
countries demand.
Germany can produce automobiles more
efficiently than other countries.
Which of the following BEST completes the Box 3
in the diagram above?
Subsidies
Tariffs
Embargoes
Standards
What is it called when an activity slows or
outright blocks the free exchange of goods and
services?
Production
Goods
Trade barrier
Quota
The European Union would be more likely to set
a trade embargo on an outside country instead of
a tariff if its goal were to
continue importing from that country.
enforce a penalty against that country.
make its own economy more competitive.
keep prices in its own economy steady.
What is the purpose of a system of currency
exchange?
to allow for trade between countries
to reduce production costs for businesses
to create demand for goods and services
to lower product prices for consumers
What is an example of an investment in human
capital?
A company buys a new computer system to
improve productivity.
A company pays for its workers to go to
graduate school.
A company starts using better materials to
improve product quality.
A company hires a lobbyist to fight government
regulations.
How does investment in capital goods affect a
nation's Gross Domestic Product (GDP)?
It causes the nation's GDP to fall.
It causes the nation's GDP to cease to rise or
fall at any significant rate.
It causes the nation's GDP to rise.
It causes the nation's GDP to rise and fall
irregularly from year to year.
How did adopting the euro help European Union
member-states?
It stopped the fluctuation of currency values.
It allowed member-states to economically
specialize.
It eliminated the costs of currency exchange.
It created another barrier to trade with
nonmembers.
Because there are no pure free market or command what are all economic systems considered?
Market
Command
Mixed
Capitalist
What type of economic system do most European countries have?
Mixed, mostly Command
Mixed, mostly Communist
Mixed, mostly Market
Mixed, mostly Traditional
Which European country listed is the least free?
Russia
Germay
United Kingdom
Which country has the most freedom in answering the economic questions of “What to produce?,” “How to produce it?,” and “For whom to produce?”
Russia
Germany
United Kingdom
How do entrepreneurs increase a country's GDP?
Investing in human capital by building schools
Exporting products into the global market
Create jobs by opening new businesses
By dividing the GDP by the population
A business owner wants to increase the efficiency and productivity of their workers. Which of the following would be an investment in their capital goods?
Replacing old machines with new ones
Sending their workers to additional training
Starting a new business
Clearing a field to expand their farmland
Why is specialization necessary?
No country has all of the factors that increase economic growth, so they must specialize
Scarcity requires countries to focusing on producing what they are best at, in order to purchase what they do not have.
If a country does not participate in specialization they will be unable to trade
Entrepreneurs must have all factors that increase economic growth in order to produce goods and services
Which type of trade barrier is the most restrictive?
Tariff
Quota
Embargo
What effect did the creation of the Euro have on the member countries of the European Union?
Decreased production of goods and services
Increased literacy rate
Increased trade
Decrease tourism
What must you do in order to purchase goods or services when visiting a country which uses a currency different from your own?
Currency Exchange
Import Currency
Specialize
Invest
Which of the following is mostly likely to put pressure of the government of a country to change their behaviors?
Tariff
Quota
Embargo
What is the purpose of the European Union?
Combine Europe in to one large country in order to remove trade barriers
Decrease economic competition and participation
Promote greater cooperation and economic development of European countries
Increase the number of trade barriers between European countries
Which economic system includes government ownership of land, resources, and major industries?
Traditional
Market
Command
Your sixth grade class decided to open a popcorn stand and sell popcorn during lunch. Unfortunately, students are complaining that they are standing in line for too long. You have discovered that your popcorn machine is old and slow. Students need to get their popcorn faster if you want to increase profits.
What change can you make to increase profits?
Invest in your capital goods
Invest in your human capital
Lower the prices students are paying
Lower the quota of student purchases
What is a benefit of having few trade barriers between European Union countries?
Increased trade between countries
Increased unemployment numbers
Increases in the prices of consumer goods
Increases in the quality of consumer goods
How is a market economy different from a command economy?
Command economies encourage entrepreneurs, market economies do not
Market economies provide jobs to all citizens, command economies do not
Command economies guarantee yearly pay raises to workers, market economies do not
Market economies have competition between companies, command economies do not
Which is a change Russia could make to move closer to a market economy on the economic continuum?
Create more laws about dangerous manufacturing jobs
Invest in public education by building more schools
Have fewer government owned businesses
Place more quotas on imported goods
The United Kingdom has few natural resources. However, they do very well in manufacturing, banking, and technology services. They focus on these parts of their economy and trade for natural resources.
What economic term describes what the United Kingdom is doing?
Trade Barriers
Specialization
Mixed Economy
Entrepreneurship
Which letter best represents Russia?
A
B
C
Hugh wants to sell products manufactured in his country, to consumers in around the world. This will involve him in international trade.
What needs to be in place so Hugh will know the price of his products in these other countries?
A common world currency
An embargo on the countries he wants to trade with
A system for exchanging currency between countries
A treaty with each country setting the price for his products
Why must countries trade?
Currency exchange lets them use their own currency when trading
Scarcity means they do not have all of the resources they want
To protect domestic workers
To reduce trade barriers
How does investing in capital goods increase profits?
It educates workers.
It improves the quality of the natural resources.
It increases productivity by allowing faster production.
It encourages entrepreneurs to start more businesses.
Additional training or education of workers is an example of which factor of production?
Entrepreneurs
Capital Goods
Human Capital
Natural Resources
Why do countries, businesses, or people participate in specialization?
Scarcity requires them to focus on what they are best at in order to trade for what they do not have.
So that they can use trade barriers to protect the jobs of domestic workers.
Because command economies are controlled by the government.
Because quotas limit the number of imports.
Which trade barrier creates the most restrictions?
Tariff
Quota
Embargo
Which of the following are ways that the European Union increased trade between member nations?
Creation and use of the euro
Restricted movement between member nations
Eliminated tariffs on trade between member nations
Increase the use of quotas and embargos in Europe
Which letter best represents the United Kingdom?
A
B
C
An economic system where the government tells people what jobs they will have and what prices they will pay is called a...
Command Economy
Market Economy
Barter Economy
How do countries solve the problem of scarcity?
Engage in trade to purchase what they do not have
Impose tariffs to protect their country's workers
Invest in capital goods to increase production
Move closer to free market on the economic continuum
The country of Dunce wants to increase their GDP. Their literacy rate is currently 78%. Which of the following would BEST increase their GDP?
Offer jobs for all citizens
Invest in businesses by giving loans to build more factories
Build schools for all citizens to receive an education
Create incentives for citizens to start businesses
Why is specialization necessary?
No country has all of the factors that increase economic growth, so they must specialize
Scarcity requires countries to focusing on producing what they are best at, in order to purchase what they do not have.
If a country does not participate in specialization they will be unable to trade
Entrepreneurs must have all factors that increase economic growth in order to produce goods and services
The United Kingdom has few natural resources. However, they do very well in manufacturing, banking, and technology services. They focus on these parts of their economy and trade for natural resources.
What economic term describes what the United Kingdom is doing?
Trade Barriers
Specialization
Mixed Economy
Entrepreneurship
A country's Gross Domestic Product (GDP) is _______
The total value of goods and services produced in one year.
The total value of imports received each year.
The total value of each person's income.
The total value of all of the houses in the country.
What is a trade barrier?
Anything the government does to limit trade
Specialization
Something that prohibits travel
A social injustice
Why is a country better off if it does not have to import natural resources?
