In a democracy, from where does the power to govern derive?
A.
hereditary rights
B.
ownership of the land
C.
the claim to divine right
D.
the people being governed
D. the people being governed
Read the text and answer the question.
In Country X, the factors of production are all publicly owned and controlled by the government. The basic economic questions of what to produce, how to do so, and how to distribute goods are determined by Country X's government and not by market forces. Because they are set by central planners, prices do not signal to producers whether to increase or decrease production.
What kind of economy does Country X have?
A.
The government's role in setting the prices of goods shows that Country X has a market economy.
B.
The government's ownership of the factors of production shows that Country X has a market economy.
C.
The government's encouragement of entrepreneurship shows that Country X has a command economy.
D.
The government's control of the factors of production shows that Country X has a command economy.
D. The government's control of the factors of production shows that Country X has a command economy.
Which barrier to trade blocks all trade between nations?
A.
an embargo
B.
a tariff
C.
a quota
D.
a sanction
A. an embargo
Country A charges a 35% tax on automobiles imported into the country. This is an example of
A.
a tariff.
B.
a quota.
C.
an embargo.
D.
a specialization.
A. a tariff.
How do governments invest in capital goods?
A.
by providing free medical care for all of their citizens
B.
by providing housing assistance for all of their citizens
C.
by giving tax breaks to companies that protect the environment
D.
by giving tax breaks to manufacturers that update their machinery
D. by giving tax breaks to manufacturers that update their machinery
Match each type of barrier to trade to its effect.
blocks all trade with another country -------- Tariff
taxes certain classes of imported or exported goods -------- Quota
limits the volume of goods imported from a foreign country ---------- Embargo
blocks all trade with another country -------- Embargo
taxes certain classes of imported or exported goods -------- Tariff
limits the volume of goods imported from a foreign country ---------- Quota
How do investments in human capital help improve a nation's economy?
A.
by reducing the efficiency of production
B.
by improving the job skills of the population
C.
by improving access to natural resources
D.
by reducing competition between businesses
B. by improving the job skills of the population
What do countries with command economies base their answers to economic questions on?
A.
what skills workers have
B.
what consumers demand
C.
what previous generations produced
D.
what the government wants to produce
D. what the government wants to produce
Which term is used to refer to a country focusing on producing a relatively small number of goods or services based on what the country can produce most efficiently?
A.
opportunity cost
B.
competition
C.
specialization
D.
entrepreneurship
C. specialization
Which statement would MOST LIKELY be true in market economy?
A.
Most people enter the same field of employment as their ancestors.
B.
Economic production decisions are made by a small council of experts.
C.
The government provides employment and necessary resources for its people.
D.
Business owners decide what goods to produce and at what price to sell them.
D. Business owners decide what goods to produce and at what price to sell them.
How do governments invest in human capital?
A.
by providing tax incentives to build factories
B.
by providing job-training programs for citizens
C.
by providing home-buying incentives for families
D.
by providing housing for those that cannot afford it
B. by providing job-training programs for citizens
Why do countries trade with each other?
A.
Most countries trade with other countries in order to make alliances.
B.
Most countries trade for foreign currency to promote economic growth.
C.
Most countries produce a surplus of goods that would be wasted otherwise.
D.
Most countries cannot efficiently produce everything their populations need.