Study Guide:Unit 3 Environmental and Economic Forces in Europe

Economic Forces

  1. In what economic system, does demand of the buyers and sellers control the economy, but the government may regulate some pricing or production?

Mixed

  1. What economic system mostly consists of farming, gathering and people producing the product will be part of the same family?

Traditional

  1. In what economic system, are items produced based on demand, how it will be produced is based on sellers and individuals will decide who will produce?

Market

  1. Which of the four types of economic systems would be associated with a democracy?

Market or mixed, mostly market

  1. Which of the four types of economic system would be associated with communism?

Command or Mixed, mostly command

  1. In what type of economic system is there a lot of farming and citizens barter or trade for goods?

Traditional Economy

  1. Most countries have a ______economic system.

Mixed

  1. In a command economy, who makes the economic decisions?

The government/Central Planners

  1. If Congress were to vote to increase taxes on imported goods, that is an example of what type of trade barrier?

Tariff

  1. If America were to put a limit on the amount of products coming from China, what type of trade barrier would that be?

A quota

  1. What type of trade barrier stops all items from entering a country?

An embargo

  1. Russia, UK and Germany all have what type of economic system?

Mixed, mostly market Economy

  1. What is the affect that natural resources have on a country’s GDP?

It makes the GDP go up.

  1. What is human capital? What happens when a country invests in human capital? What TWO things go up?

When a business/country invests in the education, training and healthcare of workers.
GDP and standard of living both go up

  1. What are capital goods? What happens when a country invests in capital goods? What goes up?

When a business/countries invest in factories, machines and technologies, buildings and property. GDP and standard of living both go up

  1. What are natural resources?

“gifts of nature”; resources that can be found naturally in nature; they are not manmade.

  1. Having a lot of natural resources leads to a country to have a higher ______.

GDP

  1. What type of investment involves paying for education, training and healthcare of the workers?

Human capital

  1. What type of investments involves paying money for equipment to better a business?

Capital goods

  1. Someone who risks his/her own money to start a business is called a ______.

Entrepreneur

  1. How do entrepreneurs positively affect GDP?

Create businesses which provides people with jobs.

Environmental Issues

  1. What are the countries of Europe doing to fix the problems caused by air pollution?

They are working on policies to improve environmental issues

  1. What were some of the effects of the Chernobyl disaster?

Birth defects

Contaminated farm land

Mass evacuation

Cancer

  1. What is similar about the environmental issues between the UK and Germany?

They are both working towards reducing air pollution by using less fuels

  1. What are European countries doing to stop environmental issues today?

They are creating policies to prevent air pollution

  1. True/False: replacing trees that have been cut down is an example of a capital investment.

False

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