Thursday, October 31, 2013
Tuesday, October 29, 2013
Unit 5 Study Guide
Unit 5 Study Guide
1. The three basic types of economic systems are:
Traditional, command, market
2. In a command economy, how are economic decisions made?
Government planners
3. How are economic decisions made in a traditional economy?
Custom and habit
4. In a market economy how are economic decisions made?
Consumers and the market
5. A product is brought into a country through trade or sale
import
6. Why are most modern economies referred to as mixed?
Most countries have aspects of all three economic types at work in their economy
7. Why do most economies in the world today operate somewhere in between a market economy and a command economy?
Most economies have found they need a mix of free market and some government control to be successful and protect consumers
8. How does specialization benefit a society?
Better quality products, workers do what they are good at, and increased trade
9. Government policies that slow down or prevent one country from exchanging goods with another
Trade barriers
10. What is a tariff?
A tax placed on goods coming into one country from another
11. Currency is also known as
money
12. Natural resources are
Raw materials used to make products
13. What is an embargo?
A halt to trade with a particular country
14. What is a quota
A limit on the amount of foreign goods allowed into a country
15. What generalization can be made about the relationship between national wealth and literacy?
Literacy is usually higher in wealthy countries
16. What is human capital?
Skills and education workers have
17. Why have the Israelis made a big investment in human capital?
They need well trained workers because their economy depends on advanced technology
18. If a country does not invest in its human capital, how can it affect the country’s gross domestic product?
GDP may go down because poorly trained workers will not be able to do their jobs as well
19. What are capital goods?
The factories and machines used to make the goods
20. What is entrepreneurship?
Someone who is willing to take a risk to begin a new business
21. How has Israel’s lack of oil affected that country’s economy?
The Israeli economy depends on technology rather than natural resources such as oil
22. How do literacy rates in Southwest Asia differ for men and women?
In nearly all the countries, women have a lower literacy rate than men
23. Why was OPEC created?
To regulate the supply and price of oil
24. What happens to the price of oil when OPEC countries decide to limit production?
Prices rise
25. Where are most of the OPEC countries located?
Southwest Asia
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