Types of economies
In the Tommy's village everyone does the job that they're ancestors did. What type of economic system does Tommy live under?
Traditional Economy
Define all 4 trade barriers.
100 points for every correctly defined trade barrier.
Physical Barrier: A physical feature limiting voluntary trade
Tariff: A tax on imports
Quota: A limit on imports
Embargo: A complete ban on trade with a country
What are the 4 factors of production?
100 points for every correctly listed factor.
Natural Resources/Land
Labor/Human Resources
Capital/Capital Goods
Entrepreneurship
What currency does most of the European Union use?
The Euro
What is scarcity?
When there is not enough of something for everyone to get what they need.
In the country of Allengrad the government decides citizens jobs and wages. They also give out food rations too every single citizen. What kind of economic system does Allengrad have?
Command
The Pyrenees Mountains are an example of what type of trade barrier?
A physical trade barrier
Mrs. McLaughlin recently started a bakery. What factor of production is this an example of?
Entrepreneurship
Why is currency exchange necessary?
Not all currencies are worth the same and not every country uses the same currency.
What is gross domestic product?
The value of all goods and services produced in a country in 1 year.
In country X buyers and sellers are allowed to operate however they would like there is no government regulation to stop them. What kind of economic system is this?
Market
Germany wants to limit the amount of foreign cars being imported into their country. What trade barrier would help them do this?
A Quota
What does investing in the 4 factors of production do to the GDP of a country?
Investing in the 4 factors of production will increase a countries GDP and make it's economy stronger.
What is the purpose of the European Union?
The purpose of the European Union is to help with the economies of the member nations and to make sure they are economically competitive on a global scale.
What is gross domestic product per capita?
The value of goods and services produced per person in 1 year.
In Haygoodville business owners are allowed to set up whatever business they'd like as long as it falls within the parameters and laws set up by the government. What kind of economic system is this?
Mixed
The country of Latveria is one of the biggest trading partners with the the United States. Recently evidence came out proving that Latveria is violating the human rights of it's citizens. What trade barrier could the United States implement to show they do not support Latveria doing this and want it to stop?
The United States could implement an Embargo.
Bobby Drake owns a large farm. The farmers on his farm use tractors to plow his fields.
What factor of production are the tractors?
What factor of production are the farmers?
What factor of production are the fields?
What factor of production is Bobby Drake?
Tractors are capital goods
The farmers are human capital
The fields are Natural Resources
Bobby Drake is an entrepreneur
Leo is traveling from the United States to Canada. He wants to exchange $10.00 US Dollars (USD) into Canadian Dollars (CAD).
Exchange Rate: $1.00 USD = $2.00 CAD
How many Canadian Dollars will Leo get for his $10.00 USD?
20.00 CAD
Germany makes cars really well and trades them to Canada in exchange for Canada's high quality lumber. What is this an example of? (The answer is not voluntary trade)
Specialization
What kind of economic system does the United kingdom have. (Be specific about which way it leans on the economic continuum)
Mixed Market Leaning
The United States government noticed that the price of domestically made corn was higher than corn imported from Spain. What trade barrier could the US government use to fix this issue and explain why.
Tariff or a Quota, both would raise the price of the imported corn making most consumers by the domestically grown corn.
What would happen to the literacy rate of a country if the government decided to invest money into human capital?
The literacy rate for the country would increase because the government is investing in education for the citizens.
Maya is traveling from the United States to Japan. Before her trip, she exchanges $50.00 US Dollars (USD) into Japanese Yen (JPY).
Exchange Rate: $1.00 USD = 150 JPY
How many Japanese Yen will Maya receive for her $50.00 USD?
7,500 JPY
What is GDP used to measure?
It's used to measure the strength and growth of an economy.