Unit 3 - Practice test

Question 1

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

Answer 1

quotas

Question 2

What is the term for taxes imposed on imported goods and services often used to discourage imports and raise more government capital?

Answer 2

tariffs

Question 3

the branch of study concerned with the production, consumption, and the transfer of wealth

Answer 3

economics

Question 4

the study of the decision-making of individuals and firms over the allocation and use of scarce resources

Answer 4

microeconomics

Question 5

What is the term for a charge placed on a loan in exchange for receiving the loan?

Answer 5

interest rate

Question 6

Individuals can freely compete in the open market.

Answer 6

competition

Question 7

Individuals have the right to earn and save money.

Answer 7

profit

Question 8

Individuals are allowed ownership assets.

Answer 8

private property

Question 9

Individuals have the right to decide what to buy, when to buy it, and how to use it.

Answer 9

economic freedom

Question 10

when a government seizes a private business and claims it for its own

Answer 10

nationalization

Question 11

the study of the decision-making of individuals and firms over the allocation and use of scarce resources

Answer 11

microeconomics

Question 12

relating to government revenue, especially taxes

Answer 12

fiscal

Question 13

the act of creating incentives, or motivators, to perform a particular action or task

Answer 13

incentivize

Question 14

a tax or duty placed on the exports or imports of a good from another country

Answer 14

tariffs

Question 15

the act of starting a new business from the very beginning

Answer 15

entrepreneurship

Question 16

those that start businesses from the very beginning

Answer 16

entrepreneurs

Question 17

all the natural resources a nation uses to produce goods and services

Answer 17

What are factors of production?

Question 18

the economic problem of having more human desires than there are available resources to meet those desires

Answer 18

scarcity

Question 19

the monetary value of all the goods and services a country produces over a given period of time, typically calculated annually

Answer 19

GDP - Gross Domestic product

Question 20

manufactured goods or services sold to another country

Answer 20

exports

Question 21

manufactured goods or services that are purchased from another country

Answer 21

imports

Question 22

the process of businesses and organizations operating on an international scale

Answer 22

globalization

Question 23

trade penalties imposed by one nation onto another

Answer 23

sanctions

Question 24

There are three specific questions inherent in every economic system. Which is NOT one of those questions?

Answer 24

Should we export globally?

Question 25

_____ occurs when a country is facing a recessionary period.

Answer 25

Cyclical unemployment

Question 26

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?

Answer 26

subsidies

Question 27

In this economic system, both the government and individuals make decisions about how economic resources are to be produced and distributed.

Answer 27

mixed economies

Question 28

This system is typically found in socialistic countries.

Answer 28

command economies

Question 29

In this economy, the government only provides a few key services.

Answer 29

mixed economies

Question 30

This type of economic system has produced the most wealth compared to others.

Answer 30

market economies

Question 31

This type of economy requires the most government control.

Answer 31

command economies

Question 32

This economy is rooted in tradition.

Answer 32

traditional economies

Question 33

In this economic system, a nation’s government makes all the economic decisions.

Answer 33

command economies