Question

part 2: fill in the blank (20 - pts)
directions: use the word bank below to fill in each blank with the correct term. each word will be used only once.
word bank: market, command, mixed, traditional, tariff, quota, embargo, currency exchange, specialization, entrepreneurship

1. in a ____ economy, decisions are based on customs and traditions.
2. a ____ system combines government control and private business.
3. a ____ is a tax placed on imported goods to encourage people to buy local products.
4. an ____ completely stops trade between countries.
5. in a ____ economy, the government controls all production and prices.
6. ____ allows people or nations to focus on producing goods they do best.
7. ____ is when people start and manage businesses, taking risks for a profit.
8. a ____ limits the number of goods that can enter a country.
9. in a ____ economy, business owners and consumers decide most things with limited government involvement.
10. ____ allows businesses and travelers to trade money between countries.

Explanation:

1. Traditional economies rely on customs and traditions for economic decisions.
2. Mixed economies combine government control and private - business elements.
3. A tariff is a tax on imported goods to promote local products.
4. An embargo halts all trade between countries.
5. Command economies have the government controlling production and prices.
6. Specialization enables focus on producing what one does best.
7. Entrepreneurship involves starting and managing businesses for profit.
8. A quota limits the quantity of goods entering a country.
9. Market economies have business owners and consumers making decisions with limited government involvement.
10. Currency exchange allows trading of money between countries.

Answer:

1. Traditional
2. Mixed
3. Tariff
4. Embargo
5. Command
6. Specialization
7. Entrepreneurship
8. Quota
9. Market
10. Currency Exchange