Economic decisions are based on custom and historical precedent.
What is a Traditional Economy?
100
A tax on imports.
What is a tariff?
100
An organization of independent nations whose goal is to create a unified and strong makret. They introduced a common currency in 2002.
What is the European Union?
100
The difference between the value of a nation's exports and its imports.
What is "balance of trade"?
100
The year that the Soviet Union collapsed.
What is 1991?
200
Governmental planning groups make the basic economic decisions.
What is a Command (or Control) Economy?
200
A limit on the amount of a foreign good or service that may be legally imported.
What is a quota?
200
In the 1990's the United States, Canada, and Mexico signed a pact that will eventually eliminate all barriers to trade among the three countries.
What is NAFTA? (North American Free Trade Agreement)
200
Whenever the value of the products a country imports exceeds the value of the products it exports.
What is a trade deficit?
200
Countries with the highest per capita GDP's tend to have this type of economy.
What is a market economy?
300
Decisions are guided by the changes in prices that occur as individual buyers and sellers interact in the market place.
What is a Market Economy? (or Capitalism)
300
Prohibits all trade with people and businesses in a specific country.
What is an embargo?
300
An international body that oversees trade among nations. It organizes negotiations about trade rules and provides help to countries trying to develop their economies.
What is the World Trade Organization? (WTO)
300
Total gross domestic product divided by the population.
What is per capita GDP?
300
Two large countries that are transitioning from a command economy to a market economy.
What are China and Russia?
400
There are no pure command or market economies. To some degree, all modern economies exhibit characteristics of both systems.
What is a Mixed Economy?
400
Government payments to exporters.
What are subsidies?
400
People and nations do not have enough resources to meet all their wants and needs. Trade is one way that nations solve this problem.
What is scarcity?
400
The belief that the means of production should be owned and controlled by society.
What is socialism?
400
Most countries trying to make the transition to a market-based economy have per capita income that is only a fraction of that in more industrialized countries.
What are developing countries?
500
Every society, regardless of its political structure, must develop an economic system to determine how to use its limited productive resources to answer the three basic economic questions of _______.
What is "what, how, and for whom to produce"?
500
Safety, environmental, health, or other technical requirements set by a government. Imports must meet these requirements before they are allowed to come into the country.
What are standards?
500
The ability of a country to produce a good at a lower cost than another country can.
What is comparative advantage?
500
A belief that one class would evolve, property would all be held in common, and that there would be no need for government.
What is communism?
500
Two obstacles that many developing countries face.
What is a high rate of population growth, no access to ocean trade routes, lack of natural resources, problems left over from war, severe debt, or corruption of government officials?