European Economic Understandings
  • 1. What kind of economic system does the United Kingdom have?
A) Mixed Market Economy
B) Market Economy
C) Command Economy
D) Mixed Economy
  • 2. Germany has a mixed economy also known as a social market economy.
A) False
B) True
  • 3. Currently, Russia has a command economy.
A) True
B) False
  • 4. Which of these is NOT one of the three questions that must be answered about each countries economic system?
A) How will goods and services be produced?
B) What goods and services will be produced?
C) Why will we have an economic system?
D) Who will consume the goods and services?
  • 5. What is scarcity?
A) limited supply of something
B) % of adults that know how to read and write
C) a tax on imports
D) money people use to make trade easier
  • 6. What is the most common economic system today?
A) Market
B) Traditional
C) Mixed
D) Command
  • 7. Which European country that we studied has the least amount of freedom with their economic system?
A) Germany
B) United Kingdom
C) Russia
D) France
  • 8. The European Union is a large free-trade zone, what does that mean for the member countries of the EU?
A) there are no entrepreneurs in the EU
B) there are no tariffs between the countries
C) the standard of living is low
D) the currency differs from country to country
  • 9. What is the currency that most people in the EU use?
A) pound
B) euro
C) dollar
D) ruble
  • 10. What is the total market value of the goods and services produced by a country's economy during a specific year?
A) Gross Domestic Product
B) Trade Barriers
C) Entrepreneurship
D) Foreign Exchange
  • 11. Which of these is an example of investment in human capital?
A) buying new computer systems
B) building a new factory
C) building new roads
D) education and skills training
  • 12. Which of these is NOT an example of investment in capital?
A) education and skills training
B) buying new computers
C) building new roads
D) building a new factory
  • 13. Someone who has an idea for a good or service and takes the risks to produce it is known as __________________________.
A) a geologist
B) an entrepreneur
C) an economist
D) a banker
  • 14. When goods leave a country
A) import
B) embargo
C) tariff
D) export
  • 15. When goods come into a country
A) import
B) capital
C) foreign exchange
D) export
  • 16. Which of these is NOT an example of a natural resource?
A) gas
B) computers
C) coal
D) oil
  • 17. What issue does Russia have with their natural resources?
A) Russia has natural resources but the government will not allow the businesses to access them
B) Russia has natural resources but the location and the climate make it difficult to gain access to them
C) Russia doesn't have any natural resources, they have to import everything
D) Russia does not have any issues with their natural resources
  • 18. Which of these is not one of the three basic types of economic systems?
A) Command
B) Market
C) Domestic
D) Traditional
  • 19. Which country has the strongest economy in Europe?
A) Russia
B) Greece
C) United Kingdom
D) Germany
  • 20. This type of trade barrier forbids trade with another country.
A) quota
B) tariff
C) euro
D) embargo
  • 21. Let's say that one euro is equal to 1.5 dollars. If you see a jacket that is priced at 45 euros, how many dollars would that be? (Set up a proportion)
A) $45
B) $22.50
C) $67.50
D) $33.75
  • 22. Is Russia part of the European Union?
A) No
B) Yes
  • 23. Which county has recently voted to be removed for the European Union?
A) Germany
B) Italy
C) United Kingdom
D) Russia
  • 24. Why is Russia's economy suffering?
A) For years Russia did not invest in their capital resources.
B) The educational system is terrible and nobody knows how to read and write.
C) The people in Russia did not want to improve their standard of living.
D) Russia's economy isn't suffering.
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