Economical Systems Review

Unit 2

The ____ is the difference between the value of a nation’s exports and its imports.

a. trade surplus b. balance of trade c. exchange rate d. trade barrier

Review

____ is a country’s ability to produce a good at a lower opportunity cost than another country can.

a. Quota b. Tariff c. Comparative advantage d. Productive capacity

Review

The WTO is an international organization that

a. institutes trade barriers. b. sets discount rates. c. oversees trade. d. sets the exchange rate.

Review

This organization allows for the free movement of goods, services, and workers among 15 countries.

a. EU b. WTO c. WWF d. NAFTA

Review

What is the name for a system in which private citizens own the factors of production?

a. mixed economy b. traditional economy c. command economy d. market economy

Review

____ goods give Americans access to products they might not have otherwise been able to enjoy.

a. Imported b. Exported c. Quota d. Domestic

Review

A small percentage of goods produced in the United States are ____, or sold to other countries.

a. exported b. tariffed c. traded d. imported

Review

What combines basic elements of a pure market economy and a command economy?

a. traditional economy b. mixed economy c. market economy d. command economy

Review

____ is the belief that the means of production should be owned by society, either directly or through the government.

a. Capitalism b. Fascism c. Socialism d. Communism

Review

A ____, or customs duty, is a tax on an imported good.

a. quota b. tariff c. trade barrier d. restriction

Review

What eliminated all trade barriers among the United States, Canada, and Mexico?

a. NAFTA b. WTO c. NASCAR d. EU

Review

Which of the following is a result of a trade deficit?

a. communism fails b. trade is balanced c. the currency gains value d. the currency loses value

Review

The ____ is the price of one nation’s currency in terms of another nation’s currency.

a. currency trade b. exchange rate c. currency rate d. free trade

Review

What is a limit placed on the amount of foreign goods imported?

a. tariff b. key trade c. sanction d. quota

Review

A country has a trade ____ when the value of the products it imports exceeds the value of the products it exports.

a. surplus b. barrier c. deficit d. balance

Review

What is the belief in a classless, ungoverned society in which property would all be held in common?

a. capitalism b. socialism c. communism d. fascism

Review

A ____ is a system in which the major economic decisions are made by the central government.

a. mixed economy b. traditional economy c. command economy d. market economy

Review

This measure expresses GDP in terms of each person in a country.

a. per capita GDP b. real GDP c. balanced GDP d. market GDP

Review

What term refers to a system in which things are done “the way they have always been done.”

a. mixed economy b. command economy c. market economy d. traditional economy

Review

____ refers to convincing countries not to pass laws that block or limit trade.

a. Free trade b. Market economy c. Developing economy d. Economic diplomacy

Review