Economics Quiz

What are capital goods?

• Goods sold directly to consumers

• Physical goods used to produce other goods and services

• Money used to start a business

• Services provided by businesses

What is a cartel?

• A type of government tax on goods

• A group of producers that control supply and prices in a market

• A law that limits production in industries

• A government program that regulates trade

What is an embargo?

• A tax on imported goods

• A government order that restricts trade with a specific country

• A limit on how much of a product can be imported

• A group of businesses that set prices together

What is entrepreneurship?

• The study of international trade

• The ability to take risks to create and run a business

• A system where businesses are owned by the government

• The process of selling goods to foreign markets

In a command economy, who makes the economic decisions?

• Consumers and businesses

• The government

• Individual entrepreneurs

• A group of private corporations

GDP (Gross Domestic Product) measures:

• The number of people living in a country

• The total value of all goods and services produced in a country within a year

• The total amount of money spent by consumers

• The total imports and exports of a country

What does it mean to specialize in an economy?

• To limit production to a small amount of goods

• To focus on producing a specific type of good or service efficiently

• To stop trading with other countries

• To increase taxes on imported goods

How is GDP per capita calculated?

• GDP divided by the total population

• The total number of goods exported

• The number of businesses in a country

• The total income earned by the government

What is a quota?

• A tax on goods imported into a country

• A limit on the amount of a product that can be imported or exported

• A type of government subsidy

• A measure of economic productivity

What is human capital?

• Money invested in businesses

• The natural resources found in a country

• The knowledge, skills, and experience of workers

• The total amount of goods produced in a country