Download “Europe`s Economic Systems” Unit Three Study Guide I. Economic

“Europe’s Economic Systems”
Unit Three Study Guide
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I. Economic Systems
1. Fill in the chart with a definition and an example of the 4 types of economic systems:
Economic System
Definition
Traditional
Based on customs. Children often do the same job
as their parents did.
Government answers all economic questions
Command
Market
Own by private individuals and people. Based on
supply and demand
Example
Amish, primitive tribes in African,
Asia, and South America.
Cuba, Former Soviet Union, North
Korea
United Kingdom, Australia, Canada
2. Most Democratic countries have which type of economic system? Market
3. Most Communist countries have which type of economic system? Command
4. What are the 3 basic questions that every economic system must answer? What to product? For whom to
produce? How to produce?
5. What is bartering? Trading.
Which economic system uses bartering to trade goods? Traditional economy.
6. Which economic system is based on individual choice? Market
7. Which country is the closest to having a pure Market economy? United Kingdom
II. Trade Barriers
8. Fill in the chart below with a definition of the 3 types of economic trade barriers:
Economic Trade Barrier
Tariff
A tax on imported goods
Definition
Quota
A limit on the number of imports allowed into a country
Embargo
A complete trade ban with a country
9. What are 3 examples of physical trade barriers in Europe? Mountains, natural disasters, rivers
III. Economic Growth (Gross Domestic Product)
10. Fill in the chart below with a definition and an example of the 4 factors that contribute to economic
growth:
Factor
Definition
Example
Human Capital
People who perform work
Employees
Capital Goods
Any asset needed to complete work
Technology, buildings, tools
Natural Resources
Resources supplied by nature
Lumber, minerals, fossil fuels
Entrepreneurship
A persons who takes on the risk of owning their
own business
17. A country focusing on building new factories with updated machinery and new technology is investing in
_Capital goods
18. A country focusing on education and training of its citizens is investing in human capital
19. Define entrepreneurship: A persons who takes on the risk of owning their own business
20. Entrepreneurship influences economic growth by creating jobs in the marketplace, introducing innovative
products, helping economies adapt to changing conditions in a global society.
21. A country’s investment in developing human capital and capital goods will increase or decrease a
country’s Gross Domestic Product (GDP). Circle your answer.
IV. Comparing European Economies
22. Russia’s economy has moved away from Command and more towards Market since 1991—why? Their
government has allowed for more economic freedom (communist to democratic)
23. What do the economic systems of United Kingdom, Germany, & Russia all have in common? They are all
mixed-market with some elements of command
24. How do Russia’s harsh climate, size, and few navigable rivers affect its economic development? It has
made investing in natural resources difficult
VI. Environmental Issues
25. Describe what happened at Chernobyl and explain why the people abandoned the city. The nuclear power
plant exploded,
26. List at least 3-consequences as a result of the Chernobyl disaster. Contaminating the air, land, and water.
Increased cases of cancer.
27. Define Acid Rain: Pollutants in the air mix with precipitation. Kills trees, erodes stone, and contaminates
water
(Which country is affected?) Germany
28. Define Air Pollution: Fossil Fuels get trapped in the atmosphere and create smog. Causes health problems.
(Which country is affected?) United Kingdom
Just a reminder!!!!! Remember to study your unit 3 vocabulary, flip book, and lap book.