1.
You are a small business owner and you sell computer gaming consoles to teenagers & young adults because they're easy to build, popular, and highly profitable. You set prices based on your stock & weekly sales. Which type of economy do you have?
A
command
B
socialist
C
market
2.
In a traditional economic system people usually exchange goods or services rather than use money. Which of the following is an example of this exchange process?
A
exchanging Pokemon cards
B
charging goods on a credit card
C
writing a check for a service
3.
Which of the following is found in a market economy?
A
guaranteed annual pay raises
B
government control of agriculture
C
competition and freedom
4.
The United Kingdom Customs Service has found toxic lead-based paint in toys imported from a Chinese toy-making company. What type of trade barrier would guarantee that no child in the United Kingdom would be exposed to the deadly lead-based paint?
A
quota
B
embargo
C
tariff
5.
The United Kingdom's Parliament votes to increase tariffs upon goods from another country. This is an example of...
A
...a socialist congress preventing free enterprise.
B
...a communist government allowing freedom of speech.
C
...a representative democracy restricting trade.
6.
The Prime Minister of the UK is forming a plan to improve the economy by rewarding companies who provide education to employees, so workers will be prepared for the high-tech jobs of the 21st century." His plan is based on the conclusion that...
A
an investment in capital goods will increase the country’s gross domestic product (GDP)
B
an investment in human capital will increase the country’s gross domestic product (GDP)
C
adjusting the exchange rate will increase the profit the U.S. makes in international trade
7.
A 6th−grade class decides to open a popcorn stand. The stand and the popcorn popper are examples of which factor of production?
A
human capital
B
natural resources
C
capital resources
8.
In which country would you most likely have the most difficulty opening a new business?
A
Germany
B
Russia
C
United Kingdom
9.
What is used to determine the value of one currency against another?
A
exchange rate
B
a balance scale
C
coin slot machine
10.
Which of the following provides the best indication of a country's standard of living?
