The Bank for International Settlements Does What?

Coordinate banking regulations in various countries

Which of these has occurred during the most recent period of globalization?

An increasing gap between rich and poor countries

What can a country do in response to a trade embargo?

Pursue a policy of national self-sufficiency

Foreign aid is often given in order to do what?

Respond to an emergency situation

How does globalization hurt developed countries?

It leads to job loss and wage decreases

Developing countries are those that are described as which of the following?

Have a very low standard of living

The World Bank Does What?

Provides loans to help reduce poverty

The International Monetary Fund Does What?

Gives advice and economic assistance

Define: Comparative Advantage

The existence of lower opportunity costs than competitors

Define: Interdependence

The existence of tight economic interconnections

The World Bank loans developing countries money in order to do what?

Enable those countries to engage in sustainable development

What gives one country a comparative advantage in the production of a certain good?

A lower opportunity cost for production of that good

What is the effect that globalization has had on the majority of the world's underdeveloped countries?

Underdeveloped countries aren't enjoying the fruits of globalization

Define: Protectionism

The existence of trade barriers such as tariffs and quotas

Define: Absolute Advantage

The existence of a lower-cost productive process

Offshoring takes jobs away from the United States because companies do what?

Shift their manufacturing activities to foreign countries with lower labor

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Economics - Unit 6 Test Review

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Questions 23

Answers

1
The Bank for International Settlements Does What?
Helps resolve trade disputes
Coordinate banking regulations in various countries
Gives advice and economic assistance
Provides loans to help reduce poverty
2
Which of these has occurred during the most recent period of globalization?
Rapid recovery from short-term recessions
Up and down rates of unemployment and inflation
An increasing gap between rich and poor countries
A slowdown of GDP growth rates
3
What can a country do in response to a trade embargo?
Pursue a policy of national self-sufficiency
Increase its comparative advantage
Join an international organization
Remove consumer-protection regulations
4
The increasing interconnectedness among national economic systems is known as what?
Protectionism
Economic growth
Globalization
The free-market system
5
Foreign aid is often given in order to do what?
Prevent inflation
Retaliate against trade barriers
Extract natural resources
Respond to an emergency situation
6
How does globalization hurt developed countries?
It reduces foreign investment
It cuts tax revenues
It increases prices paid by consumers
It leads to job loss and wage decreases
7
Developing countries are those that are described as which of the following?
Have rapid economic growth rates
Continue to use protective trade policies
Have a very low standard of living
Rely on outdated industrial processes
8
Which of these does the division of labor most directly enable?
Globalization
Specialization
None of the above
Comparative advantage
9
The World Bank Does What?
Coordinate banking regulations in various countries
Helps resolve trade disputes
Provides loans to help reduce poverty
Gives advice and economic assistance
10
The International Monetary Fund Does What?
Coordinate banking regulations in various countries
Provides loans to help reduce poverty
Gives advice and economic assistance
Helps resolve trade disputes
11
Define: Comparative Advantage
The existence of tight economic interconnections
The existence of lower opportunity costs than competitors
The existence of a lower-cost productive process
The existence of trade barriers such as tariffs and quotas
12
Define: Interdependence
The existence of trade barriers such as tariffs and quotas
The existence of lower opportunity costs than competitors
The existence of tight economic interconnections
The existence of a lower-cost productive process
13
The World Bank loans developing countries money in order to do what?
To enable the imposition of industrialization and free trade
Enable those countries to engage in sustainable development
To provide stability for the currency exchange market
To make profit to fund the World Trade Organization
14
The ability of countries to specialize in the production of certain goods is limited by the existence of what?
Trade barriers
Banking regulations
International organizations
Labor unions
15
What does the IMF impose on countries accepting its loans?
Trade sanctions
Industrialization
High interest rates
Conditionality
16
Boycotts are intended to get countries or companies to do what?
Face higher costs
Accept globalization
Become more efficient
Stop objectionable practices
17
Which of these promotes increased international trade?
The power of labor unions
Improved communication
Quotas and subsidies
A decentralized banking system
18
What gives one country a comparative advantage in the production of a certain good?
A more highly skilled workforce
A well-developed national infrastructure
A lower opportunity cost for production of that good
A more efficient productive method for that good
19
Increasing economic interdependence also brings increased what?
Tariffs
Prices
Growth
Wages
20
What is the effect that globalization has had on the majority of the world's underdeveloped countries?
Underdeveloped countries are rapidly becoming industrialized
Underdeveloped countries aren't enjoying the fruits of globalization
Underdeveloped countries are seeing increasing rates of economic growth
Underdeveloped countries are benefiting from massive increases in foreign i
21
Define: Protectionism
The existence of trade barriers such as tariffs and quotas
The existence of a lower-cost productive process
The existence of lower opportunity costs than competitors
The existence of tight economic interconnections
22
Define: Absolute Advantage
The existence of a lower-cost productive process
The existence of trade barriers such as tariffs and quotas
The existence of tight economic interconnections
None of the above
23
Offshoring takes jobs away from the United States because companies do what?
Increase prices, which undermines consumer purchasing power
Lose money in the currency exchange market
Shift their manufacturing activities to foreign countries with lower labor
Increase their imports and reduce their exports, leading to a large trade d

Economics - Unit 6 Test Review Flashcards | StudBud