Economic Systems
For seventy years, until the 1990s, Russia had what type of economy?
Command
The European Union is considering placing a limit of 6,000 per month on US automobiles allowed to be imported into its member countries. What trade barrier is this an example of?
What is a Quota
Investing in trucks, computers, and machinery for your company would be an example of investing in ___________
What is capital goods
Term that describes the conflict between desires and limited resources
What is scarcity
Tonya decides to take a trip from the U.S. to the Caribbean for some relaxation and shopping. In order to shop, the banks charge a fee for her to convert her U.S. money into the local money system. Which vocabulary term makes the transfer of money between countries possible?
What is currency exchange
An economic system that relies on customs, social roles, barter, and trade to determine what is produced?
What is traditional economy
The Presidents wants to put a tax on all imports (items brought into the country) from China. Some say that this would help local business while others argue that it will hurt business. This would be an example of which type of Trade Barrier
What is a Tariff
A person that starts their own business
What is an entrepreneur
The percentage of people who can read and write
What is Literacy Rate
John starts an online business selling T-shirts made in his home. Unfortunately, not many T-shirts have been selling lately and John needs to move them off his shelf. John decides to lower the price in order to get rid of the remaining T-shirts. What characteristic of a Market economy is represented by this decision?
What is Supply and Demand
In this type of economic system, business are privately owned & there is competition. Government does collects taxes and provides safety standards for businesses. What system am I?
What is mixed
During the time of the Persian Gulf War, the UN placed a restriction that banned trade with Iraq. This action indicates which type of trade barrier?
What is an embargo
Resources used by businesses which are created by and found in nature (trees, oil, water)
What are natural resources
The total amount of all goods and services produced in a country in a year
What is GDP
Lois decides to go back to school to further her degree in accounting as a way of growing her business. Lois needs a new Apple computer for her business and class. The computer represents which factor of production?
What is capital goods
Countries like the UK, Germany, and modern Russia all have what type of economy?
What is Mixed
Any law or practice that a government uses that limits free trade between countries
What is a trade barrier
A company sending their workers back for training on new computer software would be an example of investing in
What is Human Capital
A country focusing on one or two goods/services in order to be more productive
What is specialization
Tom wants to start a business selling hats. He opens a small shop in town where people choose from different styles and colors of hats. Tom decides to charge $15 per hat.
What type of Economy does Tom's country have?
What is Market
Competition, supply and demand, profit, and private owned businesses are all characteristics of which economic system
What is market
What is the most commonly used trade barrier
What is a tariff
Literacy is the ability to read and write. Increasing the literacy rate is investing in which factor of production?
What is Human Capital
Economic concept that explains how the price of a good rises or falls depending on how many people want it and how much of the good is available
What is supply and demand
Natalia wants to open a bakery to sell cupcakes. However, the government assigns her a job in a textile factory.
What type of economy is Natalia's country?
What is Command