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. In a command economy, the government controls 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. In a market economy, business owners and consumers make decisions with limited government involvement.
10. Currency exchange allows for trading 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