1. Political and Economic Systems Test Review

2. This system is where some laws come from the central government, and some laws come from each state? 1. Unitary 2.Confederation 3.Federal 4.Parliamentary

3. 3. Federal

4. The U.K, Russia, Germany and the U.S all have which type of economy? 1. traditional 2 command 3. mixed 4. market

6. Which economic system has features of traditional, command and market systems? 1. Market 2. Traditional 3. Mixed 4. Free Market

7. 3. mixed

8. Being a member of the European Union provides all EXCEPT: 1. one common currency 2. more human capital for your country 3. more trade partners 4. more economic and financial stability

9. 2. more human capital for your country

10. What type of capital is an employee/ worker 1. market capital 2. state capital 3. capital good 4. human capital

12. Which system is where social roles and culture determines how goods are made, sold and bought? 1. Mixed 2. Command 3. Free Market 4. Traditional

14. What economic system does the government have the biggest impact and control of the economy? 1. mixed 2. command 3. traditional 4. market

15. 2. command

16. Presidential and Parliamentary systems have the following in common: 1. democratic forms of govt 2 leader types 3. ways the power is distributed 4. currency

17. 1. democratic forms of govt

18. How does investing in human capital impact a nation’s economy 1. it increases the literacy rate and effectiveness of business 2. it decreases the amount of unemployment and crime 3. it adds to the Gross Domestic product of the country 4. all of the above

20. True or False? A quota is the limit a government places on goods that can be imported from another country 1. True 2. False

21. 3. traditional

22. A trade barrier in which the government places restrictions on imports and exports of certain goods; often backed by military force is… 1. tariff 2. embargo 3. quota 4. capitalism

23. 2. embargo

24. A political system based on 1-party rule; government ownership of economic resources, and decisions are made by the government is? 1. communism 2. capitalism 3. socialism 4. fascism

25. 1. communism

26. An increase in value of all goods and services a country makes from 1 year to another is called? 1. currency exchange 2. economic growth 3. gross domestic product (GDP) 4. capital goods

27. 2. economic growth

28. A tax on an import is a 1. quota 2. tariff 3. embargo 4. sale

29. 2. tariff

30. Trade between countries around the world is called… 1. International trade 2. currency exchange 3. embargo 4. economic guarantees

31. 1. International trade

32. Private businesses are part of command economies? 1. TRUE 2. FALSE

33. 2 FALSE

34. All of the following are questions a nation must answer to build an economy EXCEPT: 1 what to produce 2. who is going to produce it 3. how to produce 4. for whom to produce

35. 2. who is going to produce it

36. A place or situation where money from different countries is bought and sold for a price is… (ex. I go to Germany and have to swap my dollars for Euros) 1. economic growth 2. GDP 3. exports 4. currency exchange

38. use of income today in a way that allows growth in the future 1. economic growth 2. GDP 3. investment 4. capital goods

39. 3. investment

40. Which of the following statements is the BEST example of a command economy? 1. anyone can easily start a company 2. anyone can easily make a profit from hard work 3. the government decides the jobs of its citizens and what’s for sale 4. traditional foods are gathered.

41. 3. the government decides the jobs of its citizens and what’s for sale

42. way in which a nation uses its resources to satisfy people’s needs and wants 1. supply and demand 2. scarcity 3. GDP 4. market economy

43. 1. supply and demand

44. economic system that has features of traditional, command and market systems 1. market 2. mixed 3. command 4. traditional

45. 2. mixed

46. exchange of goods and services between countries 1. import 2. export 3. trade barrier 4. international trade

48. goods and services traded with or sold to other countries 1. scarcity 2. export 3. import 4. trade

49. 2. export

50. word used to describe conflict between people’s desires (wants) and the limited amount of resources 1. scarcity 2. export 3. import 4. trade

51. 1. scarcity

52. goods brought into country from another country through trade or sale 1. scarcity 2. export 3. import 4. trade

53. 3. import

54. allows business owners to compete in market with little government control (owner decides everything about business- capitalism 1. market 2. mixed 3. command 4. traditional

55. 1. market

56. total value of the goods and services produced in a country during a given period of time 1. economic growth 2. capital goods 3. investment 4. GDP

57. 4 GDP

58. When a government limits free trade between countries (embargo, tariff, quotas). Can also be a physical feature (ex. Mountains) or wars, weather, etc. 1. scarcity 2. export 3. import 4. trade barrier

60. someone who brings together labor, land and capital goods to produce goods and services. They take risks to start a business. 1. entrepreneur 2. human capital 3. capital goods 4. natural resources

61. 1. entrepreneur

62. governmental system in which the central government makes ALL laws for the country 1. confederation 2. unitary 3. autocratic 4. federation

63. 2. unitary

64. citizens in this type of system have no say in how the government system is run. 1. confederation 2. unitary 3. autocratic 4. federation

65. 3. autocratic

66. government led by king or queen. 1. multi-party system 2. monarchy 3. one-party system 4. democracy

67. 2. monarchy

68. The United States, Germany and the U.K. are examples of a(n) ______ economic system. 1. Command 2. Market 3. Traditional 4. Democratic

69. 2. Market