Micro Test 4

Question 1

The number of units of one nation’s currency that equals one unit of another nation’s currency

Answer 1

Exchange rate

Question 2

The flow of foods between countries without restrictions or special taxes

Answer 2

Free trade

Question 3

The organizations and methods used to determine what goods and services are produced, how they are produced, and for whom they are produced

Answer 3

Economic System

Question 4

The government’s use of embargoes, tariffs, quotas, and other restrictions to protect domestic producers from foreign competition

Answer 4

Protectionism

Question 5

An economic system that answers the What, How, and For Whom questions that way they have always have been answered

Answer 5

Traditional economy

Question 6

A law that bars trade with another country

Answer 6

Embargo

Question 7

A tax on an import

Answer 7

Tariff

Question 8

An economic system that answers the What, How, and For Whom questions by a dictator or central authority

Answer 8

Command economy

Question 9

An economic system characterized by government ownership of resources and centralized decision making

Answer 9

Socialism

Question 10

A limit on the quantity of a good that may be imported in a given time period

Answer 10

Quota

Question 11

Was a philosopher and economist famous for his ideas about capitalism and communism

Answer 11

Karl Marx

Question 12

A fall in the price of one currency relative to another

Answer 12

Depreciation of Currency

Question 13

The process of turning a government enterprise into a private enterprise

Answer 13

Privatization

Question 14

An economic system that answers the What, How, and For Whom questions through a mixture of traditional, command, and market systems

Answer 14

Mixed Economy

Question 15

The ability of a country to produce a good at a lower opportunity cost than another country

Answer 15

Comparative advantage

Question 16

The lending agency that makes long-term low-interest loans and provides technical assistance to less-developed countries

Answer 16

World Bank

Question 17

The lending agency that makes short-term conditional low-interest loans to developing countries

Answer 17

IMF-Inter. Mont. Fund

Question 18

The transfer of money or resources from one government to another with no repayment required

Answer 18

Foreign Aid

Question 19

A rise in the price of one currency relative to another

Answer 19

Appreciation of currency

Question 20

An economic system characterized by private ownership of resources and markets

Answer 20

Capitalism

Question 21

An economic system that answers the What, How, and For Whom questions using pries determined by the interaction of the forces of supply and demand

Answer 21

Market economy

Question 22

The ability of a country to produce a good using the same or fewer resources than another country

Answer 22

Absolute advantage

Question 23

Capital goods usually provided by the government, including highways, bridges, waste and water systems, and airports

Answer 23

Infrastructure

Question 24

The strong belief that the interests of a particular nation-state are of primary importance. Also, the belief that a people who share a common language, history, and culture should constitute an independent nation, free of foreign domination

Answer 24

Nationalism

Question 25

An economic system characterized by private ownership of resources and markets

Answer 25

Capitalism