InetTeacher.com



Government and Economics Test Study Guide

1. Know the ten economic terms and definitions in your Economic Graphic Organizer!

• Capital Goods- Factories, machines, and technology that people use to make products to sell.

• Entrepreneur- A person who is willing to take a risk to start a new business.

• Embargo- A trade barrier in which one country announces that it will no longer trade with another country.

• Human Capital- The education, experience, and training of people.

• Trade Barrier- Anything that limits trade (i.e. tariffs, quota, trade embargo)

• Natural Resources- Resources that come from the earth that can be used to produce goods and services (i.e. water, air, land, and trees)

• Quota- The limit on the quantity of a product that may be imported or exported.

• Specialization- The products a country makes best and that are in demand on the world market.

• Tariff- A tax placed on goods when they are brought into one country from another.

• Gross Domestic Product- The total value of all goods and services produced in a single year.

2. Explain the differences between the following economies:

• Market- People decide what to produce and how to produce it with very little interference from the government

• Command- In this economic system, the government decides what will be produced and sold

• Traditional- Tradition and culture determine how goods and services are produced and sold.

• Mixed- This economy is a mix between all three of the economies listed above. Most economies around the world have a mixed economy.

3. Know the definitions of the following government types:

• Oligarchy-A government where the power rests with a small group of people.

• Autocracy- A form of government where unlimited power is held by an individual.

• Unitary- All of the main are made by “one” central government.

• Theocracy- A government that is ruled by a religious leader.

• Federal- Powers of government are shared between the central and regional government.

4. Which branch of government is responsible for making and carrying out the laws in a parliamentary system of government? The legislature is responsible for making and carrying out the laws in a parliamentary system of government.

5. What is Shariah law? Shariah law are Islamic laws that are based on the teachings of the Quran.

6. Which M.E. country can be described as an autocracy? Saudi Arabia is an absolute monarchy as well as an autocratic government. Most of that country’s political power is held by the King.

7. When a country has a high gross domestic product, what sort of economy would it most likely have? Economies that are mixed generally have a higher GDP.

8. Why is it important for a country to invest in its human capital? When a country educates its people, they are more likely going to earn more money. Those countries that do not are usually very poor!

9. What is the major difference between a market and mixed economy? The major difference between a market and mixed economy is that in a market economy, there is very little interference with the government. Most economies around the world have mixed economies.

10. In what economy are you LEAST likely going to find entrepreneurs? Why? You are LEAST likely going to find entrepreneurs in a command economy because the government controls most aspects of the economy.

................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download