AnswersEconomicsThe Global Economy

Practice Test Answers

14 verified answers
1
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Which of these statements most accurately describes the use of currencies in different parts of the world?

A
Different countries use different currencies.
B
All countries are required to use the same currency.
C
Most countries use the dollar as their currency.
D
Countries in Asia use the euro as their currency.
2
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Which form of transportation has led to more efficient business in a global market?

A
high-speed trains
B
cargo ships
C
tractor trailers
D
helicopters
3

Globalization is the process of

A
requiring or relying on something.
B
limiting exhange of goods and services.
C
connecting the world over time.
D
focusing on certain goods and services.
4

Why does an increase in literacy rates often accompany an increase in per capita income?

A
Developed countries often attempt to raise low literacy rates to improve income.
B
People who have higher-paying jobs often have the time available to develop literacy skills.
C
Developing countries have higher-than-average literacy rates, which typically leads to higher income.
D
People who can read and who receive an education are eligible for higher-paying jobs.
5

Which describes the difference between a trade surplus and a trade deficit?

A
A trade surplus is when a country exports more than it imports, while a trade deficit happens when imports exceed exports.
B
A trade surplus is when a country produces more than it consumes, while a trade deficit happens when consumption exceeds production.
C
A trade deficit is when a country loses money on products it makes, while a trade surplus happens when production leads to profits.
D
A trade surplus is when a country imports more than it exports, while a trade deficit happens when exports exceed imports.
6

Why do developing countries usually have less variety in their economic activities?

A
Limited access to education means that people are not trained to work in industry or technology.
B
Focusing on one or two economic activities leads to more rapid economic development.
C
Developing countries are usually small and have limited populations and resources.
D
People prefer the lifestyle that accompanies traditional activities such as farming.
7

Which best describes the effect negative incentives have on a certain course of action?

A
They make the action less profitable.
B
They make the action difficult.
C
They make the action less likely.
D
They make the action impossible.
8

An exchange rate table makes it easy to compare the

A
unemployment rates for two or more countries.
B
value of the currencies for two or more countries.
C
cost to produce the currency used by a single country.
D
different currency denominations used by a single country.
9

What should be included in an outline for an informative essay? Choose two correct answers.

A
a thesis statement
B
parenthetical citations
C
a final opinion
D
several subtopics
E
secondary sources
10

Which statement explains the main reason to create an outline for an informative essay?

A
An outline can help a writer avoid the need to make revisions.
B
An outline can help a writer find evidence for a claim.
C
An outline can help a writer select an approach to a topic.
D
An outline can help a writer arrange the references to be cited.
11

What is a benefit associated with free trade?

A
enhanced innovation and technology
B
higher inflation due to import competition
C
increased government revenue from tariffs
D
limited market access for domestic industries
12

An economic incentive is best described as something that

A
benefits producers or consumers when taking action.
B
forces producers or consumers to act in a certain way.
C
motivates producers or consumers to take action.
D
pushes producers or consumers to act on the government's behalf.
13

How did NAFTA affect the economies of participating countries?

A
by creating a balance of exports and imports
B
by raising employment rates and standards of living
C
by increasing the overall volume of production
D
by creating unrestricted trade benefits
14

A reason that countries trade with each other is

A
to share excess resources.
B
to get products they cannot produce.
C
to help their neighbors.
D
to sell goods they do not need.

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