Economics Review Question 1 Which of the following

Economics Review

Question # 1: Which of the following is not a synonym for a market economy? A. B. C. D. Capitalism Specialization Laissez-faire Free Enterprise

Question # 2: In a traditional economy which of the following traits would you be most likely to witness? A. The bartering of goods and services B. The exchange of currency for goods C. The government deciding what goods to sell and buy D. Forcing individuals to buy products through military force

Question # 3: Which of the following Asian countries would you say today most closely represents a command economy? A. B. C. D. China India Vietnam North Korea

Question # 4: Almost every country in the world today has what type of economic system? A. B. C. D. Mixed Market Command Traditional

Question # 5: What are two of South Africa’s largest exports? A. B. C. D. Gold and Ivory Gold and Diamonds Oil and Textiles

Question # 6: Which of the following is not an economic struggle that South Africa is facing today? A. Wealth is unevenly distributed among races B. Diseases such as HIV are resulting in a low life expectancy rate C. Having an abundance of natural resources D. High unemployment rate

Question # 7: Why is specialization so valuable in international trade today? A. Countries can only make one product very well B. It limits the amount of agriculture a country allows C. It helps to lower prices on imported goods D. It allows people to make/sell what they do best and trade for the products or services they need

Question # 8: What is the purpose of trade barriers? A. To speed up trade between certain countries B. To slow down or stop trade between certain countries C. To increase exports to another country D. To allow for free trade

Question # 9: Countries around the world have different types of currency. How do countries participate in international trade despite various currencies? A. Through a currency exchange system B. Through a barter system C. Through the use of trade barriers D. Everyone uses the US dollar to pay for goods and services

Question # 10: Which African country listed below specializes in the production of oil? A. B. C. D. South Africa Kenya Nigeria Democratic Republic of Congo

Question # 11: Which of the following is not an example of a company investing in human capital? A. A toy manufacture trains its workers on how to make the toy product more effectively B. A coal mine invests in modernizing its machines C. A car company works to improve the safety conditions for its workers D. A technology company requires that its workers attend classes & seminars to stay current on the newest trends

Question # 12: Africa is currently responsible for the exporting of about 20% of the world’s supply of this natural resource used for the building of nuclear weapons. What is the resource? A. B. C. D. Atomic Energy Uranium Natural gas Phosphates

Question # 13: What economic term is used to refer to creative, original thinkers that take risks in starting new businesses? A. B. C. D. Investor Entrepreneur Specializer Enterpriser

Question # 14: What economic terms is used to describe the limiting of foreign goods that are allowed into a country? A. B. C. D. Quota Tariff Enterprise Embargo

Question # 15: Which of the following two trade barriers are used to encourage the purchase of locally produced or grown goods? A. B. C. D. Embargo & Tariff Embargo & Quota & Tariff Quota & Enterprise

Question # 16: Which best explains how Israel has made up for their lack of natural resources? A. They have no unemployment B. They have an economy based on advanced technology C. They rely heavily on agricultural D. They have specialized in oil

Question # 17: Which of the following is not an example of a capital good? A. B. C. D. Factories Workers Machinery Technology

Question # 18: Where are most of the OPEC countries located? A. B. C. D. Africa Southwest Asia Southern and Eastern Asia South America

Question # 19: Japan has one of the most technologically advance cultures in the world despite what? A. B. C. D. Having a low GDP Having a low literacy rate Having little natural resources Their capital goods not being modernized

Question # 20: The Great Leap Forward and the Cultural Revolution were examples of China’s attempt to do what? A. B. C. D. End communist rule Improve the economy Sell more goods overseas Control population growth

Question # 21: Which of the following is not a major success of India’s economy? A. Electronics Industry B. Technology Services C. Extracting & exporting of Uranium D. Producing Bollywood films

Question # 22: Approximately half of China and India’s workers do what for a living? A. B. C. D. Herd animals Agriculture Mine coal & other resources Work in the service industry

Question # 23: What is defined as the total value of all goods and services produced by a country in a single year? A. B. C. D. GDP (Gross Domestic Product) GDP per capita Capital goods CEO (Country Economic Output)

ANSWERS 1. B 2. A 3. C 4. A 5. B 6. C 7. D 8. B 9. A 10. C 11. B 12. B 13. B 14. A 15. C 16. B 17. B 18. B 19. C 20. B 21. C 22. B 23. A