Standard of Living
What is Standard of Living?
The level of wealth and material comfort available to a person or community.
What are the 4 types of economies?
Market, mixed, traditional and command.
What is Specialization?
When an individual or company specializes in doing one part of a task and relies on others to complete the other parts.
What is a Trade Barrier?
Something that prevents trade
A goal of the European Union is to promote free trade and use a common currency. True or false?
True
What is Literacy Rate?
The percentage of people in a country that can read or write.
What do the economic systems of the United Kingdom, Germany, and Russia have in common?
They all have mixed economies.
Which is an example of specialization?
A. A business makes many different types of goods.
B. A country buys all the goods it needs from other countries and does not produce any of its own.
C. A factory focuses on producing one or two types of goods and leaves the production of other goods to other factories.
D. A car company has 10 employees, each employee is responsible for building an entire car by themselves.
C. A factory focuses on producing one or two types of goods and leaves the production of other goods to other factories.
What are 3 types of trade barriers?
Quota, Tariff & Embargo
What is the currency of the European Union called?
Euro
If a country has a low literacy rate are they more likely to have a standard of living or a low standard of living?
Low
True or false, a communist country is most closely related to a Market Economy.
False
What are some advantages of specialization for a country?
Trade can be more organized
Promotes trade
Helps with productivity and growth of a country's economy through exports
What type of trade barrier makes trade more expensive by adding a tax?
Tariff
You and your friends decide to open a lemonade. The stand, the cups, and the pitcher are examples of what?
Capital resources
If the literacy rate of a country was 20%, what kind of GDP would that country usually have?
Low GDP
What types of activities are often a part of traditional economies?
arming, herding livestock, hunting and gathering
What are some advantages of for businesses?
Workers can focus on one skill set and create a more quality product quicker and cheaper.
Helps to improve productivity and grow income.
In order to help U.S. car companies sell more cars, some people want to put a limit on the number of cars that can be imported from Germany. This is an example of what type of trade barrier?
Quota
When a country does not invest in their human capital and their capital resources, the country will have more income because of the education and new factories. True or false?
False
How does a country's literacy rate effect their standard of living? EXPLAIN
If the literacy rate is low, people are less likely to be educated and less likely to be able to have high paying jobs. If the literacy rate is high, people are able to become more educated and work at higher paying jobs.
Who sets the price for goods in the UK? What do they base this decision on?
Buyers & sellers agree upon the price using supply & demand.
What are disadvantages of specialization for companies and country's?
They can have a surplus or overproductions of products or goods without a market to sell them.
Unintentionally using up all of a natural resource.
Workers can get bored or tired of doing only one task day after day, causing productivity to suffer.
The countries of the European Union have refused to sell goods to the country of Iran if they continue their nuclear weapons program. This is an example of what type of trade barrier?
Embargo
What is GDP and what can it tell us about a country's economy?
Gross domestic product is the total income of a country and it can tell us how strong or weak a country's economy is.