Unit 3 - Practice test Flashcards
a government-imposed trade restriction that limits the number of goods or services that can be imported or exported during a period of time, usually in the form of monetary value
quotas
What is the term for taxes imposed on imported goods and services often used to discourage imports and raise more government capital?
tariffs
the branch of study concerned with the production, consumption, and the transfer of wealth
economics
the study of the decision-making of individuals and firms over the allocation and use of scarce resources
microeconomics
What is the term for a charge placed on a loan in exchange for receiving the loan?
interest rate
Individuals can freely compete in the open market.
competition
Individuals have the right to earn and save money.
profit
Individuals are allowed ownership assets.
private property
Individuals have the right to decide what to buy, when to buy it, and how to use it.
economic freedom
when a government seizes a private business and claims it for its own
nationalization
the study of the decision-making of individuals and firms over the allocation and use of scarce resources
microeconomics
relating to government revenue, especially taxes
fiscal
the act of creating incentives, or motivators, to perform a particular action or task
incentivize
a tax or duty placed on the exports or imports of a good from another country
tariffs
the act of starting a new business from the very beginning
entrepreneurship
those that start businesses from the very beginning
entrepreneurs
all the natural resources a nation uses to produce goods and services
What are factors of production?
the economic problem of having more human desires than there are available resources to meet those desires
scarcity
the monetary value of all the goods and services a country produces over a given period of time, typically calculated annually
GDP - Gross Domestic product
manufactured goods or services sold to another country
exports
manufactured goods or services that are purchased from another country
imports
the process of businesses and organizations operating on an international scale
globalization
trade penalties imposed by one nation onto another
sanctions
There are three specific questions inherent in every economic system. Which is NOT one of those questions?
Should we export globally?
_____ occurs when a country is facing a recessionary period.
Cyclical unemployment
What is the term for some kind of benefit, often in the form of tax breaks, given by the government to encourage a type of behavior, such as tax incentives to increase exports?
subsidies
In this economic system, both the government and individuals make decisions about how economic resources are to be produced and distributed.
mixed economies
This system is typically found in socialistic countries.
command economies
In this economy, the government only provides a few key services.
mixed economies
This type of economic system has produced the most wealth compared to others.
market economies
This type of economy requires the most government control.
command economies
This economy is rooted in tradition.
traditional economies
In this economic system, a nation’s government makes all the economic decisions.
command economies
