Exam Review

In my country, the government makes all the economic decisions.

• Traditional

• Command

• Market

• Mixed

What is this called?

• A continuum

• A scale

• A key

• A communism

True or false:

Specialization encourages trade.

• True

• False

True or false:

Tariffs encourage trade.

• True

• False

Find the right match:

1. a tax
2. a limit
3. a ban

• 1. quota
  2. tariff
  3. embargo
• 1. tariff
  2. quota
  3. embargo
• 1. embargo
  2. quota
  3. tariff
• 1. quota
  2. embargo
  3. tariff

Countries with a high literacy rate often have a __________ standard of living.

• high

• low

The percentage of people who can read in a country.

• GDP

• per capita GDP

• growth rate

• literacy rate

A country invests in its workers by providing improved education and medical care. What will likely happen to this country's GDP?

• It will probably increase

• It will probably decrease

• It will stay the same

The island nation of Minecraftia has many natural resources, such as gold, oil, and lumber. But there are no ports, highways, or machinery to take advantage of these resources. The leaders of Minecraftia need to invest in the country's ______________.

• physical capital

• human capital

• GDP

• per capita GDP

Entrepreneurs help create ____________ because they start businesses that can sometimes grow very large.

• tariffs

• embargoes

• jobs

• communism