Transcript Europe gov`t and econ study guide

Government and Economic
Study Guide
1. Define unitary

Power flows from one strong central
authority to several weak regional
authorities.
2. Define confederation



Independent states/countries band
together for some common
purpose.
They only delegate a few powers to
the weak central authority.
States/countries retain
considerable independence.
3. Define federal

Power is divided/shared between
one central and several regional
authorities.
4. Define Autocracy



government ruled by
one person who
makes all the
decisions
Example:
dictatorship,
absolute monarchy
citizens have no say
in the government
5. Define Oligarchy



Government ruled
by a few people
Those few make
all the decisions
General citizens
have no say in the
government
6. Define democracy


government ruled
by the people
The general
citizens have
decision making
power by voting
7. What are the types of governments and
economic systems of the UK, Germany,
and Russia?

UK




Germany



parliamentary democracy
constitutional monarchy
Mixed Economy
federal republic
Mixed Economy
Russia


Federation
Mixed Economy
8. Why did so many countries in the EU
adopt the Euro?

There are so
many countries in
Europe located so
closely together
that it makes it a
lot easier to trade
with the same
money
9. What is the main purpose of the
European Union?

(1) economic protection, (2) trade
10. What are the 3 basic questions that
all economic systems have to answer?

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
What to produce?
How to produce it?
For whom to produce?
11. What is a traditional economy?

An economy where the product is
shared by the whole community and
based on customs
12. What is a pure free market
economy?

Where individuals make decisions
regarding the economy
13. What is a pure command
economy?

Where the government makes
decisions regarding the economy
14. What type of economic system do
all European countries have?

Mixed economy
15. Give an example of a country today
with mostly a command economy.


North Korea
Cuba
16. Which type of economy did East
Germany and the former SU used to have?

Command
17. Where are Russia,
United Kingdom
Germany, and the UK
75%
located on the economic
Germany
continuum?
Russia
52%
Pure
Command
73%
Pure
Market
18. Define Gross Domestic Product

The total amount of goods and
services produced in a country in a
year.
19. List 4 factors that affect a country’s
GDP

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human capital
capital goods
natural
resources
entrepreneurs
20. Define human capital


The value that people bring to the
marketplace
Human labor
21. Name two things that influence
human capital


education/training
health of employees
22. Give two examples of capital goods
 machines
like ovens,
sewing
machines,
computers,
etc…
23. Define entrepreneur

a person who is willing to take a
risk to create a business to sell a
new technique, idea, or product
24. Explain how natural resources
affect a country’s wealth.

Many natural
resources
usually
means more
wealth,
especially if a
country has
a lot of
petroleum
(oil)
25. Give one example of a trade barrier
in Europe
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Tariffs
Embargo
Quota
the Alps for
Switzerland
some countries
don’t use the
Euro
some countries
may be
landlocked
26. Define tariff

Taxes on imports
27. Define embargo

A ban on trade with a country for
political reasons
28. Define quota

A limit on the amount of a specific
good that is imported
29. What is meant by “currency
exchange rate”?

The ratio between two different
currencies
30. What is one reason why it is more
expensive to have exchange currencies
from one country to another country?

Banks charge a currency exchange
fee
31. If Scandinavia has a high literacy rate,
what does that mean about its development?
 High
standard of
living
 It will have many
college graduates who
are doctors, lawyers,
architects, engineers,
etc…it will be well
developed