Chapter 6

Question 1

People choose freely to buy or sell

Answer 1

Market Economy

Question 2

system that lets competition among businesses determine the price of items

Answer 2

Free enterprise

Question 3

Privately owned property like businesses, industry, and other resources

Answer 3

capitalism

Question 4

government decides what to produce where to make and the price

Answer 4

command economy

Question 5

government controls all means of production

Answer 5

communism

Question 6

total value of goods and services in a country

Answer 6

GNP (gross national product)

Question 7

goods and services created in a country

Answer 7

GDP (gross domestic product)

Question 8

manufacturing based on machine power becomes wide spread in an area

Answer 8

industrialization

Question 9

the percentage of people who can read and write

Answer 9

literacy rate

Question 10

high industrialization, and their people enjoy high standard of living

Answer 10

developed countries

Question 11

systems of roads, ports, and other facilities needed by a modern economy

Answer 11

infrastructure

Question 12

less productive economically, and have lower standards of living.

Answer 12

developing countries

Question 13

the goods a nation brings in from different nations

Answer 13

Import

Question 14

The goods a country sells or trades with another nation

Answer 14

Export

Question 15

the ability to produce something at a lower price than another country can

Answer 15

Comparative advantage

Question 16

the loss of potential gain from other alternatives when one alternative is chosen.

Answer 16

Opportunity costs

Question 17

tax on imports. The goal is to make the price of imported goods higher than those produced at home

Answer 17

Tariff

Question 18

a limit placed on the amount of a particular good that enters a country

Answer 18

Quota

Question 19

a payment or other benefit given by a government to help a domestic producer

Answer 19

Subsidy

Question 20

use of tactics that make imported goods more expensive than domestic goods

Answer 20

Protectionism

Question 21

boundaries that follow a feature of the landscape are called

Answer 21

natural boundaries

Question 22

Boundaries that are based on cultural traits such as religion and language

Answer 22

cultural boundaries

Question 23

boundaries that are based on regular geometric boundaries

Answer 23

geometric boundaries

Question 24

feeling pride and loyalty to one’s nation or culture group

Answer 24

nationalism

Question 25

one or a few people that decide what is best for the people

Answer 25

Totalitarian governments

Question 26

A system where people decide who to rule them

Answer 26

Democracy

Question 27

the amount of products that can be imported

Answer 27

quotas