25. A product is brought into a country through trade or sale
A. Import
B. Export
C. Exchange rate
D. Quota
A. Import
100
23. If a country does not invest in its human capital, how can it affect the country’s gross domestic product?
A. Investments in human capital has little effect on a country’s GDP
B. Most workers want to keep their jobs and do not care about GDP
C. GDP is only affected if workers pay for the investment out of their own pockets
D. GDP may go down because poorly trained workers will not be able to do their jobs as well
D. GDP may go down because poorly trained workers will not be able to do their jobs as well
100
21. What is human capital?
A. Skills and education workers have
B. Taxes collected from a country’s workers
C. Money paid to workers for producing goods
D. The amount of goods sold in foreign trade in a year
A. Skills and education workers have
100
19. What is a quota
A. A limit on the amount of foreign goods allowed into a country
B. A tax placed on imported goods when they enter the country
C. A decision to prevent certain goods from being imported at all
D. A tax placed on goods when they are purchased in the market place
A. A limit on the amount of foreign goods allowed into a country
100
17. What is entrepreneurship?
A. People who enjoy saving all their money
B. Business people who try not to take risks with their money
C. Someone who is always successful in whatever he attempts
D. Someone who is willing to take a risk to begin a new business
D. Someone who is willing to take a risk to begin a new business
200
24. How does specialization benefit a society?
A. Better quality products
B. Workers do what they are good at
C. Increase trade
D. All of the above
D. All of the above
200
22. Why have the Israelis made a big investment in human capital?
A. Their main industry is the oil industry
B. Investing in human capital takes very little money
C. They have to bring in workers from other countries
D. They need well trained workers because their economy depends on advanced technology
D. They need well trained workers because their economy depends on advanced technology
200
20. What generalization can be made about the relationship between national wealth and literacy?
A. Literacy is always higher in wealthy countries
B. Literacy is usually higher in wealthy countries
C. Countries with oil wealth always have the highest literacy rates
D. There is no relationship between a country’s wealth and its literacy rate
B. Literacy is usually higher in wealthy countries
200
18. What is an embargo?
A. A tax placed on goods coming in the country from overseas
B. A limit on the amount of certain goods allowed in the country
C. A tax paid by the producer before he can sell his goods in another country
D. A halt to trade with a particular country
D. A halt to trade with a particular country
200
16. Natural resources are
A. Raw materials used to make products
B. The total of the workers in a particular country
C. The machines and tools needed to make other products
D. Evenly spread among the countries of the world
A. Raw materials used to make products
300
15. Currency is also known as
A. Gross Domestic Product
B. Money
C. Capital
D. Entrepreneurship
B. Money
300
14. What is a tariff?
A. A tax paid by the purchaser when goods are sold
B. A tax placed on goods coming into one country from another
C. A tax placed on goods made by local craftsmen or manufacturers
D. A fee paid when goods are shipped from one state to another in the United States
B. A tax placed on goods coming into one country from another
300
13. Government policies that slow down or prevent one country from exchanging goods with another
A. Entrepreneurship
B. Trade balance
C. Trade barriers
D. Currency
C. Trade barriers
300
12. Why do most economies in the world today operate somewhere in between a market economy and a command economy?
A. Government control makes a market economy profitable
B. Consumers prefer government control to a market system
C. Government control of some aspects of the economy has never been successful in the modern world
D. Most economies have found they need a mix of free market and some government control to be successful and protect consumers
D. Most economies have found they need a mix of free market and some government control to be successful and protect consumers
300
11. How has Israel’s lack of oil affected that country’s economy?
A. Israeli businesses use little oil to operate
B. Israel has little industry due to their lack of oil
C. The Israeli economy is built around large scale farming
D. The Israeli economy depends on technology rather than natural resources such as oil
D. The Israeli economy depends on technology rather than natural resources such as oil
400
10. How do literacy rates in Southwest Asia differ for men and women?
A. Women have a higher literacy rate in at least half of the countries
B. There is very little difference in the literacy rates for men and women
C. In nearly all the countries, women have a lower literacy rate than men
D. Women’s literacy rates are highest in the countries with large oil reserves
C. In nearly all the countries, women have a lower literacy rate than men
400
9. Why are most modern economies referred to as mixed?
A. Poverty is highest in countries with market economies
B. Government planners do not know how to handle markets in the modern world
C. Products made by traditional economies have no markets in the modern world
D. Most countries have aspects of all three economic types at work in their economies
D. Most countries have aspects of all three economic types at work in their economies
400
8. In a market economy how are economic decisions made?
A. Custom and habit
B. Government planners
C. Consumers and the market
D. Combination of consumers and planners
C. Consumers and the market
400
7. Why was OPEC created?
A. To regulate the supply and price of oil
B. To design new machinery to get oil from the ground
C. To help the Palestinians in their problems with Israel
D. To keep countries that are not members from producing any oil
A. To regulate the supply and price of oil
400
6. How are economic decisions made in a traditional economy?
A. Custom and habit
B. Government planners
C. Consumers and the market
D. Combination of consumers and planners
A. Custom and habit
500
5. In a command economy, how are economic decisions made?
A. Custom and habit
B. Government planners
C. Consumers and the market
D. Combination of consumers and planners
B. Government planners
500
4. What happens to the price of oil when OPEC countries decide to limit production?
A. Prices rise
B. Prices drop
C. Prices stay the same
D. Oil stops being sold
A. Prices rise
500
3. The three basic types of economic systems are:
A. democratic, communist, autocratic
B. traditional, market, mixed
C. command, mixed, market
D. traditional, command, market
D. traditional, command, market
500
2. Where are most of the OPEC countries located?
A. Africa
B. South America
C. North America
D. Southwest Asia
D. Southwest Asia
500
1. What are capital goods?
A. The workers who make the goods and services
B. The factories and machines used to make the goods
C. The money spent to train workers to use new technology
D. The goods and services that are produced for a country’s economy
B. The factories and machines used to make the goods