Review Economics of Europe

As of 2011 the economies of the United Kingdom, Germany, and Russia could be classified as MAINLY

• command
• market
• mixed
• traditional

A __________ is a tax on goods and services.

• quota
• tariff
• embargo
• subsidy

When a government sanction prohibits trade between nations.

• embargo
•  quota
• tariff
• subsidy

Why is a system of currency exchange necessary for international trade?

• Nearly all world currencies are worthless on the world market.
• Those buying goods on the world market only accept payment in gold and silver.
• Most goods bought on the international market must be bought and paid for using United States dollars only.
• There must be a way to pay for goods purchased from countries with different types of currencies

Trade barrier that is a legal limit on goods and services.

• tariff
• quota
• embargo
• subsidy

--Embargoes
--Quotas
--Subsidies
--Tariffs

Which would be a good title for this list?

• "Rule of War"
• "Benefits to Consumers"
• "Obstacles to Free Trade"
• "International Diplomatic Tools"

The purpose of the founding of the European Union (E.U.) in 1993 was to

• prevent the poor from causing a revolution.
• fight the growing global network of terrorism.
• become an economic power to compete with the Unites States.
• guarantee the freedom of movement of people, goods, services and capital.

This map shows the member states of the European Union (EU). Based on this map, what is the MOST LIKELY reason the EU was formed?

• to protect themselves from foreign enemies
• to increase trade between European nations
• to begin the process of forming one large nation
• to isolate Europe from the rest of the international community

--ditch digger
--computer programmer
--international financier
All of these are examples of

• natural resources
• entrepreneurship
• human capital
• capital goods

Machines, computers, assembly lines, technology, etc. are all examples of 

• human capital
• capital goods
• natural resources
• entrepreneurhsip