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.

European European Economics ReviewEconomics Review

1.1.

What is a trade barrier?What is a trade barrier?

A. a way to limit trade with other A. a way to limit trade with other countriescountries

B. a way to increase trade with other B. a way to increase trade with other countriescountries

2.2.

What is a tariff?What is a tariff?

A. a government order stopping trade A. a government order stopping trade with another countrywith another country

B. A tax on imported goodsB. A tax on imported goods

3.3.

What is a quota?What is a quota?

A. a tax on imported goodsA. a tax on imported goods

B. a limit on the number of goods that B. a limit on the number of goods that may enter a countrymay enter a country

4. 4.

What is an embargo?What is an embargo?

A. a limit on the number of goods ta\hat A. a limit on the number of goods ta\hat may enter a countrymay enter a country

B. a government order stopping trade B. a government order stopping trade with another countrywith another country

5. 5.

What is a free-trade zone?What is a free-trade zone?

A. An area where there are no tariffs on A. An area where there are no tariffs on imported goodsimported goods

B. An area where there are tariffs on imported B. An area where there are tariffs on imported goodsgoods

6.6.

Which type of trade barrier involves a limit Which type of trade barrier involves a limit on goods brought into the country?on goods brought into the country?

A. embargoA. embargo

B. quotaB. quota

7.7.

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

A. embargoA. embargo

B. tariffB. tariff

8. 8. Which might make an embargo against a country Which might make an embargo against a country

successful?successful?

A. The citizens in the country suffer because of A. The citizens in the country suffer because of the embargo and demand a change from their the embargo and demand a change from their governmentgovernment

B. Merchants are able to continue doing B. Merchants are able to continue doing business and are happy with the way things business and are happy with the way things areare

9.9.

What is currency?What is currency?

A. moneyA. money

B. electricityB. electricity

10. 10.

What is the currency in most of the EU What is the currency in most of the EU called?called?

A. rublesA. rubles

B. EuroB. Euro

11.11.

What is the currency of Russia?What is the currency of Russia?

A. RublesA. Rubles

B. EuroB. Euro

12. 12.

What is a problem with exchanging What is a problem with exchanging currency?currency?

A. People make more money by trading A. People make more money by trading currenciescurrencies

B. It costs more because banks charge B. It costs more because banks charge fees for exchanging currenciesfees for exchanging currencies

13.13.

What is human capital?What is human capital?

A. factories, machines, technologies, A. factories, machines, technologies, buildings, propertybuildings, property

B. education and trainingB. education and training

14.14.

What is physical capital?What is physical capital?

A. factories, machines, technologies, A. factories, machines, technologies, buildings, propertybuildings, property

B. education and trainingB. education and training

15.15.

What is Gross Domestic Product, or GDP?What is Gross Domestic Product, or GDP?

A. the total number of people living in a A. the total number of people living in a nation in a yearnation in a year

B. the total value of all the goods and B. the total value of all the goods and services produced in a country in a yearservices produced in a country in a year

16. 16.

What is literacy?What is literacy?

A. The number of people over age 15 in A. The number of people over age 15 in a country who can read and writea country who can read and write

B. The number of people over age 15 in a B. The number of people over age 15 in a country who can workcountry who can work

17. 17.

Which is an example of investing in human Which is an example of investing in human capital?capital?

A. cashA. cash

B. educationB. education

18.18.What is the relationship between investing in What is the relationship between investing in

human capital and the GDP?human capital and the GDP?

A. Usually countries that invest in human A. Usually countries that invest in human capital have higher GDPs than countries that capital have higher GDPs than countries that don’tdon’t

B. Usually countries that invest in human B. Usually countries that invest in human capital have lower GDPs than countries that capital have lower GDPs than countries that don’tdon’t

19.19.What is an example of investing in physical What is an example of investing in physical

capital by a company?capital by a company?

A. constructing a new factoryA. constructing a new factory

B. investing in educationB. investing in education

20.20.

What is an example of a natural resource?What is an example of a natural resource?

A. automobilesA. automobiles

B. forestsB. forests

21. 21.

Why is a country better off if it does not Why is a country better off if it does not have to import natural resources?have to import natural resources?

A. Other countries may need the A. Other countries may need the resourcesresources

B. Buying from other countries costs B. Buying from other countries costs more moneymore money

22. 22.

Which is an example of an entrepreneur?Which is an example of an entrepreneur?

A. people who operate a hospitalA. people who operate a hospital

B. a person who uses her money to start B. a person who uses her money to start a business selling cell phonesa business selling cell phones

23. 23.

Which is a way that entrepreneurs help Which is a way that entrepreneurs help increase a country’s GDP?increase a country’s GDP?

A. writing laws to protect personal A. writing laws to protect personal propertyproperty

B. creating businesses that give people B. creating businesses that give people jobsjobs

24.24.

What are the 3 types of economies?What are the 3 types of economies?

A. market, command, traditionalA. market, command, traditional

B. Christianity, Judaism, IslamB. Christianity, Judaism, Islam

25.25.

Most countries in the world are ___ Most countries in the world are ___ economies.economies.

A. traditionalA. traditional

B. mixedB. mixed

Human CapitalHuman Capital

Increased GDP

Physical CapitalPhysical Capital

Increased GDP

Types of Trade

Barriers

Suppose you were an Suppose you were an entrepreneur…..entrepreneur…..

What kind of business would you have?What kind of business would you have? What sort of human capital would you What sort of human capital would you

need?need? What sort of physical capital would you What sort of physical capital would you

need?need? What kinds of natural resources would What kinds of natural resources would

you need?you need?