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 econom
y.
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 did the North American Free Trade Agreement increase economic cooperation between Canada, Mexico, and the United States?
A.
by reducing barriers to immigration
B.
by imposing new tariffs on goods
C.
by creating a common currency
D.
by eliminating barriers to trade
D. by eliminating barriers to trade
Why do low literacy rates in a country hinder that country's economic development?
A.
They limit the volume of trade with other countries.
B.
They limit the natural resources the country controls.
C.
They limit the population's ability to perform skilled labor.
D.
They limit the government's ability to control information.