Download 2016 Economics Test Study Guide

Economics Test Study Guide for Test on Sept. 14th (Wednesday)
1. How do Parliamentary and Presidential democracies differ?
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In a Presidential Democracy the President is elected by the citizens, in an
election that is separate from the legislators.
A Presidential Democracy has the power of the government divided
between the Executive, Legislative, and Judicial branches as a system of
checks and balances to keep one branch from becoming too powerful.
In a Parliamentary Democracy, Members of Parliament (MPs) are elected
by the citizens. Then the Members of Parliament meet in Parliament and
choose the Head of the Party with the most seats in Parliament as the
Prime Minister.
This is much different from the Presidential form because the Prime
Minister is both the head of the Executive Branch (Leader of the Nation)
and a Member of Parliament or the legislature. In the Parliamentary form
the Legislature (Parliament) has most of the power since it chooses the
leader, makes and changes laws, taxes and spends money, appoints and
fires judges.
2. What is the Literacy Rate of a country? The percentage of citizens who are 15
and older who can read and write.
3. What is Gross Domestic Product or GDP? The total value of all products made
and services provided in a country in one year.
4. Who makes the important decisions in an autocracy? The individual ruler/dictator
5. How are economic decisions made in a traditional economy? By customs and
habit
6. What is the usual name for the leader of a Parliamentary Democracy? Prime
Minister
7. What could be a problem for a location with a traditional economy? People will
want things that cannot be made locally.
8. Who is in charge in an Oligarchy? A group of people
9. How are economic decisions made in a command economy? The government or
government planners make the decisions
10. Which form of government allows citizens to participate fully and equally?
Democracy
11. What could be a problem for entrepreneurs wanting to start a business in a
command economy? They would first have to get permission from the
government and would probably have to pay a very large tax
12. What three things have been shown to have a positive effect on human capital?
Education, training, and health care
13. Who makes economic decisions in a market economy? Individuals who are
consumers and the market represented by businesses
14. What type of economy has been successful in times of emergency or war?
Command
15. In a market economy, who takes the risk to start a business? Individual business
owners known as entrepreneurs.
16. What are some examples of natural resources? Air, water, land, and mineral
deposits
17. Why are almost all economies in the world now considered mixed economies?
Almost all have a parts of all three economies at work
18. What is the largest ocean in the world? Pacific
19. Why are most economies operating between a market and a command
economy? Countries have discovered they need a mix of government control
and free market
20. What are cardinal directions? North, south, east, and west
21. What are intermediate directions? Northwest, southwest, northeast, southeast
22. What kind of economy allows people to set their own prices and the government
is not involved? Market
23. 0º Longitude is called what? The Prime Meridian
24. What kind of economy has the government regulation business but allows and
encourages individuals to start businesses? Mixed
25. What is the meaning of “hemi-“? Half
26. What is a tariff? A tax on goods brought into a country (imports)
27. What is another name for lines of latitude? Parallels
28. What is a quota? A limit on goods brought into a country OR a limit of products
allowed for a purchase (like when Kroger says you are limited to five bags of
sugar at the sale price).
29. How do autocratic rulers normally get into power? By their bloodline (birth to a
ruler) and through the use of force (seizing power)
30. What is an embargo? When a country or individual decides not to buy or trade
from a country or others (like Mr. Sheridan’s refusal to buy anything from Toshiba
due to something the company did in the Cold War when he served in the Army)
31. How could a high tariff on imported steel help steel companies in America? It
would make the price of foreign steel more expensive allowing American steel
producers a chance to sell their steel first
32. What is an entrepreneur? Someone who risks their money and time to start a
business
33. Why is a system of currency exchange necessary to trade on world markets? It
allows a way to pay for products from other countries in the other countries
currency and for our country to get paid in dollars
34. If a country does not invest in human capital what could happen to its economy?
It might have its GDP decrease