Unit 2 Review Quiz

What are the 3 economic questions?

• What to produce? How to Produce? For whom to produce?

• Who to pay? Why do you pay? How do you pay?

• Why to produce? Tell who to produce? Things to produce?

• Say what? What's your Insta? What's for dinner?

What happens in a Traditional Economy?

• People trade goods and services without the use of money

• Privately owned businesses create goods that people buy in markets

• The government decides what will be produced and sold

• A region trades goods and services with privately owned businesses.

What is international trade?

• Giving another business goods.

• Selling to make a profit.

• Buy and sell goods and services outside borders.

• Giving goods to another country

What is a Market Economy?

• Changes in price guides what and how goods and services will be produced, distributed and consumed

• People trade goods and services without money.

• The government decides what will be produced and sold

• Blends characteristics of Command and Market Economies

The tax imposed on an imported good is known as:

• Quota

• Voluntary export restrictions

• Tariff

• Income tax

What is a Command Economy?

• Government decides what and how goods and services will be produced, distributed, and consumed.

• People trade goods and services without money.

• Changes in price guides what and how goods and services will be produced, distributed, and consumed

• Blends characteristics of Command and Market Economies

What does Gross Domestic Product measure?

• How strong a countries economy is

• Who will win the Super Bowl

• The rotten food in a country

• The rights of the citizens

What is a Mixed Economy?

• Blends characteristics of Command and Market Economies

• People trade goods and services without money.

• The government decides what will be produced and sold

• Changes in price guides what and how goods and services will be produced, distributed, and consumed

Free trade is defined as:

• A trade of exports/imports; government exerts little influence on the decisions of private firms and individuals

• grant paid by governments to producers to allow them to sell their products at less than marginal cost

• tax on imported goods

• A total ban on either the import or export of a commodity

"Free trade agreements" are defined as:

• an agreement between nations to allow the unimpeded passage of goods between the nations

• A total ban on either the import or export of a commodity

• A trade agreement that involves many countries

• grant paid by governments to producers to allow them to sell their products at less than marginal cost