Which of the following describes one purpose of APEC?

to remove tariffs among member contries

Which of the following explains how foreign portfolio investment contributes to domestic economic development?

through the purchase of securities issued by foreign entities

Explain the effect of a country with a transitional economy on the globalization process.

Further globalization of global economy, accelerates global interdependence

How can difference in Gini coefficients for the United States and China be interpreted?

They differ in how evenly income is distributed among individuals

Read the scenario below:

The country could only achieve this through trade

Who will be helped and who will be hurt from the scenario below?

Help: consumers, Canada oil, US auto parts. Hurt: US oil, Canada auto parts

What effect do foreign transitional economics have on the United States?

Generate global interdependence = stable prices, rely on foreign goods

Which explains how the exchange rate will change in the near future if the exchange rate is expected to rise?

increase demand, decrease supply = higher exchange rate in near future

A country is a leading producer of lumber and wants to increase exports, so they impose a subsidy. What are the results?

Increase exports of lumber and raise prices for consumers and producers

Which of the following trends have followed globalization?

an increase in the value of knowledge and information

Read the scenario below:

B is more developed & produces $2,000/person; A only produces $1,500/person

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Economics Unit 8 Test Study Guide

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Questions 18

Answers

1
Which of the following trends have followed globalization?
the flourishing of small businesses
technological advancement
lowered world poverty
2
Which of the following describes one purpose of APEC?
to establish a uniform currency used by member countries
to remove tariffs among member contries
to regulate equal treatment of member countries
to remove border controls among member countries
3
Which of the following measures are used to assess aspects of a population's development?
economic systems
the size of its military
infant mortality rate
4
Use the table below to answer the question: Which does Bolivia have the absolute advantage in production?
neither product
wheat and soybeans
wheat
soybeans
5
Which of the following explains how foreign portfolio investment contributes to domestic economic development?
through the merging of domestic and foreign businesses
through loans and grants issued to promote development
through the purchase of land, labor, and physical capital
through the purchase of securities issued by foreign entities
6
Explain the effect of a country with a transitional economy on the globalization process.
Leads to more countries w/ command economies, hurts globalization
Further globalization of global economy, accelerates global interdependence
Furthers globalization of global economy but slows global interdependence
Furthers the presence of mixed economic systems across the world
7
Which of the following is addressed by the USMCA?
standard currency
free travel of labor
agricultural trade
8
How can difference in Gini coefficients for the United States and China be interpreted?
They differ in how income is earned by their populations
They differ in how developed their populations are
They differ in their access to information technology
They differ in how evenly income is distributed among individuals
9
Which of the following is addressed by the USMCA?
intellectual property rights
common currency
border removal
10
Which of the following measures are used to assess aspects of a population's development?
per capita GDP
political systems
total GDP
11
Read the scenario below:
The country could only achieve this through trade
The country could only achieve this through domestic production
The country could achieve this through either domestic production or trade
The country could not achieve this by any means
12
Who will be helped and who will be hurt from the scenario below?
Help: governments, US oil, Canada autoparts. Hurt: Canada oil, US autoparts
Help: consumers, Canada oil, US auto parts. Hurt: US oil, Canada auto parts
Help: governments, Canada oil, US autoparts. Hurt: US oil, Canada autoparts
Help: consumers, US oil, Canada auto parts. Hurt: Canada oil, US auto parts
13
What effect do foreign transitional economics have on the United States?
Generate more national independence = gives rise to economic isolation
Generate global interdependence = stable prices, rely on foreign goods
Generate more national independence = economies become self-sufficient
Generate global interdependence = changing pricing, rely on foreign goods
14
Which explains how the exchange rate will change in the near future if the exchange rate is expected to rise?
increase supply, decrease demand = higher exchange rate in near future
increase demand, decrease supply = lower exchange rate in near future
increase demand, decrease supply = higher exchange rate in near future
increase supply, decrease demand = lower exchange rate in near future
15
Which term refers to a tax on imports?
subsidy
quota
embargo
tariff
16
A country is a leading producer of lumber and wants to increase exports, so they impose a subsidy. What are the results?
Increase exports of lumber & lower prices for consumers and producers
Decrease exports, lower prices for consumers & raise prices for producers
Increase exports of lumber and raise prices for consumers and producers
Decrease exports of lumber & raise prices for consumers & producers
17
Which of the following trends have followed globalization?
greater national sovereignty
a rise in world poverty
an increase in the value of knowledge and information
18
Read the scenario below:
B is more developed & produces $2,000/person; A only produces $1,500/person
A is more developed & produces $1,500/person; B has GDP of $40 mill
A is more developed with GDP of $60 mill; B only has GDP of $40 mill
B is more developed & produces GDP of $80 mill; A produces $1,500/person

Economics Unit 8 Test Study Guide Flashcards | StudBud