2021 Unit 2 Study Guide

Cell phones and the internet have both the effect of ________________.

• reducing poverty and malnutrition.

• reducing trade barriers between nations.

• improving medical technology in developing countries.

• making the world a "smaller' place by increasing communication speeds.

A protective tariff is intended to protect the __________________.

• consumers from higher prices on foreign goods.

• consumers from higher prices on goods inside the country.

• manufacturer from higher prices on materials.

• manufacturers from lower price goods imported in.

All of these are in a command economy EXCEPT_____________________.

• minimum wage

• environmental controls

• ownership of corporate stock

• government regulation of the economy

In a command economy, how are the prices of goods and services determined?

• business owners

• the central government

• market forces of supply and demand

• independent agencies and independent regulators

What statement describes one advantage of a market economy?

• Nonproductive resources are rewarded.

• The government owns the productive resources.

• A high degree of individual freedom is offered.

• A large bureaucracy is required to make economic decision.

In a traditional economy, the decision to make (or not make) certain products is decided mostly by ______________________________.

• custom

• entrepreneurs

• government

• producers

In Germany, many of the trees in the forests are dying. This is because the waxy outer coating on their tree leaves is being damaged.

• drought

• acid rain

• biomediation

• locust swarms

Which of these countries has been the WORST contributor to acid rain in Europe ?

• France

• Germany

• Sweden

• Switzerland

Coal burning factories and increased automobile usage has caused the GREATEST increase in which of these????

• air pollution

• nuclear waste

• soil depletion

• water pollution

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

• Nearly all world currencies are worthless.

• Those buying only accept gold.

• Most goods must be paid by US dollars.

• There must be a way to pay for goods purchased from other countries.