2. Types of Economies 1 Types of Economies 2 Trade 1Trade 2 Trade & Types of Economies 10 20 30 40 50

3. Question 1 - 10 What are some limitations of Capitalism?

4. Answer 1 – 10 Uneven distribution of resources, consumer difficulty in obtaining information, and health- risk products

5. Question 1 - 20 Who makes the decisions in a free enterprise economy?

6. Answer 1 – 20 People

7. Question 1 - 30 What are the basic questions all economic systems try to answer?

8. Answer 1 – 30 What to produce, how to produce, and for whom to produce.

9. Question 1 - 40 What gives businesses and individuals reason to work harder?

10. Answer 1 – 40 Profit

11. Question 1 - 50 When does competition occur?

12. Answer 1 – 50 When 2 or more businesses/people sell the same/similiar good.

13. Question 2 - 10 Which economic system has total government restrictions?

14. Answer 2 – 10 Communism

15. Question 2 - 20 T/F – You cannot own property in a free enterprise economy.

16. Answer 2 – 20 False

17. Question 2 - 30 What are some characteristics of Communism?

18. Answer 2 – 30 government ownership, no competition, and no profit

19. Question 2 - 40 Which economic system allows for freedom of production?

20. Answer 2 – 40 Capitalism.

21. Question 2 - 50 How does the Invisible Hand regulate the marketplace?

22. Answer 2 – 50 Profit and competition.

23. Question 3 - 10 If people didn’t trade, what kinds of things would we go without?

24. Answer 3 – 10 Anything you don’t produce yourself.

25. Question 3 - 20 What is the world’s largest free trade zone?

26. Answer 3 – 20 NAFTA

27. Question 3 - 30 Decisions on what to trade are based on the availability of what?

28. Answer 3 – 30 The factors of production.

29. Question 3 - 40 Why do nations trade?

30. Answer 3 – 40 Boosts economic growth, expands markets, and more efficient production.

31. Question 3 - 50 What are currency rates affected by?

32. Answer 3 – 50 Political and economic conditions Central bank intervention Speculation over future dollar value.

33. Question 4 - 10 A tax on imports is called what?

34. Answer 4 – 10 Tariff

35. Question 4 - 20 When the value of imports is greater than the value of exports, what do you have?

36. Answer 4 – 20 Trade Deficit

37. Question 4 - 30 When the value of exports is greater than the value of imports, what do you have?

38. Answer 4 – 30 Trade Surplus

39. Question 4 - 40 Why do countries impose trade restrictions?

40. Answer 4 – 40 Protect domestic producers.

41. Question 4 - 50 Name 5 Barriers to Trade

42. Answer 4 – 50 Language Infrastructure Values and Religious Attitudes Political Climate Legal Climate International Regulations

43. Question 5 - 10 What is an absolute advantage?

44. Answer 5 – 10 Production at the lowest cost.

45. Question 5 - 20 What is a comparative advantage?

46. Answer 5 – 20 Production at the lowest opportunity cost.

47. Question 5 - 30 What effect do you think a tariff has on imports? (Price and quantity)

48. Answer 5 – 30 Price goes up, quantity supplied goes down.

49. Question 5 - 40 When the amount of exports is equal to the amount of imports, what do we have?

50. Answer 5 – 40 Balance of trade

51. Question 5 - 50 Is the United States a true Capitalist society? Why/why not?

52. Answer 5 – 50 We are a mixed economy because there are some government restrictions.