Vocabulary Test

Front

A wage is considered part of labor, while capital refers to man-made resources used in production.

Back

True

Front

The circular flow model demonstrates the movement of money and resources but does not include government.

Back

False

Front

Specialization can make a country dependent on trade with other nations.

Back

True

Front

Globalization often reduces cultural exchange between nations.

Back

False

Front

An embargo is a stronger restriction on trade than a tariff or a quota.

Back

True

Front

In a market economy, supply and demand primarily determine prices and output.

Back

True

Front

Inflation always benefits workers by increasing their wages.

Back

False

Front

Protectionism policies can shield domestic industries but may raise consumer prices.

Back

True

Front

Minimum wage laws are designed to:

Back

Set a legal wage floor to protect workers

Front

Which of the following is NOT an example of capital? Factory machines, Delivery trucks, Office computers, Employee wages

Back

Employee wages