European Economics Review

1. What is a trade barrier? A. a way to limit trade with other countries B. a way to increase trade with other countries

2. What is a tariff? A. a government order stopping trade with another country B. A tax on imported goods

3. What is a quota? A. a tax on imported goods B. a limit on the number of goods that may enter a country

4. What is an embargo? A. a limit on the number of goods ta\hat may enter a country B. a government order stopping trade with another country

5. What is a free-trade zone? A. An area where there are no tariffs on imported goods B. An area where there are tariffs on imported goods

6. Which type of trade barrier involves a limit on goods brought into the country? A. embargo B. quota

7. In order to help Russian farmers sell more food, some people want to put a tax on the food imported from other countries. This is an example of a(n) A. embargo B. tariff

8. Which might make an embargo against a country successful? A. The citizens in the country suffer because of the embargo and demand a change from their government B. Merchants are able to continue doing business and are happy with the way things are

9. What is currency? A. money B. electricity

10. What is the currency in most of the EU called? A. rubles B. Euro

11. What is the currency of Russia? A. Rubles B. Euro

12. What is a problem with exchanging currency? A. People make more money by trading currencies B. It costs more because banks charge fees for exchanging currencies

13. What is human capital? A. factories, machines, technologies, buildings, property B. education and training

14. What is physical capital? A. factories, machines, technologies, buildings, property B. education and training

15. What is Gross Domestic Product, or GDP? A. the total number of people living in a nation in a year B. the total value of all the goods and services produced in a country in a year

16. What is literacy? A. The number of people over age 15 in a country who can read and write B. The number of people over age 15 in a country who can work

17. Which is an example of investing in human capital? A. cash B. education

18. What is the relationship between investing in human capital and the GDP? A. Usually countries that invest in human capital have higher GDPs than countries that don’t B. Usually countries that invest in human capital have lower GDPs than countries that don’t

19. What is an example of investing in physical capital by a company? A. constructing a new factory B. investing in education

20. What is an example of a natural resource? A. automobiles B. forests

21. Why is a country better off if it does not have to import natural resources? A. Other countries may need the resources B. Buying from other countries costs more money

22. Which is an example of an entrepreneur? A. people who operate a hospital B. a person who uses her money to start a business selling cell phones

23. Which is a way that entrepreneurs help increase a country’s GDP? A. writing laws to protect personal property B. creating businesses that give people jobs

24. What are the 3 types of economies? A. market, command, traditional B. Christianity, Judaism, Islam

25. Most countries in the world are ___ economies. A. traditional B. mixed

Human Capital Increased GDP

Physical Capital Increased GDP

Types of Trade Barriers

Suppose you were an entrepreneur…..  What kind of business would you have?  What sort of human capital would you need?  What sort of physical capital would you need?  What kinds of natural resources would you need?