AnswersOC27 Economics-2102310-Sem-MeadowsEconomic Development

Unit 5 Test Answers

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The Czech Republic’s decision in 2003 to join the European Union indicated that the Czech Republic

A
was now equal in wealth to all other European nations.
B
would give all economic control to the European Union.
C
was willing to forge economic ties with other nations.
D
would eventually achieve a mixed-market economy.
62
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A government might enact expansionary spending when it is trying to

A
increase aggregate demand for goods.
B
decrease aggregate demand for goods.
C
slow an economic expansion.
D
lower a budget deficit.
63

Read this excerpt describing the mission of the World Bank.The World Bank is a vital source of financial and technical assistance to developing countries around the world. It is not a bank in the common sense. Instead, it plays a different but supportive role in its mission of global poverty reduction and the improvement of living standards.It provides low-interest loans, interest-free credit, and grants to developing countries for education, health, infrastructure, communications, and many other purposes.

A
The World Bank is a source of financial assistance.
B
The World Bank aims to improve living standards.
C
The World Bank provides low-interest loans and credit.
D
The World Bank serves people of different income levels.
64

Read this news report about a planned devaluation of the bolivar, the currency of Venezuela.The president of Venezuela announced that the country would be devaluating the bolivar for the fifth time in nine years. The official rate is falling from 4.3 bolivars to the dollar, to 6.3, a 32% devaluation. By increasing the bolivar value of exports of oil to the US and other nations, the government hopes to alleviate a budget crisis caused by its increasing reliance on borrowing to meet spending obligations.In response to the announcement, the people of Venezuela lined up today to buy televisions, electronics, and airline tickets in order to protect themselves from projected price increases.

A
followed the law of supply and demand.
B
allowed the exchange rate to remain unchanged.
C
increased the number of bolivars needed to buy one dollar.
D
decreased the number of bolivars needed to buy one dollar.
65

The United States is said to have an absolute advantage in producing food compared with Japan. What does that mean?

A
It must import most of its food from Japan.
B
It produces food more efficiently than Japan.
C
It produces food at a higher cost than Japan.
D
It must export most of its food to Japan.
66

How are subsidies similar to tariffs?

A
Both are types of taxes.
B
Both aim to lower the price of domestic goods.
C
Both are types of tax breaks and financial assistance.
D
Both allow domestic goods to compete against foreign goods.
67

Who might write a letter to their representatives about a policy issue?

A
individual citizens and the media
B
individual citizens and political parties
C
interest groups and the media
D
interest groups and individual citizens
68

An introduction to an informative essay about globalization in China should include

A
a brief background about globalization.
B
a few sources related to globalization.
C
main subtopics related to globalization.
D
supporting evidence about globalization.
69

When a country chooses to limit the kinds of goods or services it produces, it is practicing

A
absolute advantage.
B
globalization.
C
dependency.
D
specialization.
70

Which best describes the difference between economic and social policies?

A
Economic policies control the supply of money, while social policies manage spending.
B
Economic policies address educational issues, while social policies regulate businesses.
C
Economic policies fund public schools, while social policies provide Social Security.
D
Economic policies manage taxes, while social policies provide public assistance.
71

Which statement best describes how globalization is affecting the world?

A
Globalization is growing less important as time passes.
B
The world is becoming more globalized and connected.
C
Globalization has resulted in fewer connections among countries.
D
Countries are growing less likely to trade with one another.
72

What do quotas and embargoes have in common?

A
They both tend to raise prices.
B
They both affect imports from certain countries.
C
They both set limits on imported goods.
D
They both frequently result in domestic shortages.
73

A currency shared by several countries in Europe is the.

Answer not available
74

The graph below shows the value of the US dollar versus the Canadian dollar.

Question illustration
A
rising against the Canadian dollar.
B
falling against the Canadian dollar.
C
more than twice that of the Canadian dollar.
D
about half that of the Canadian dollar.
75

The first step in creating a public policy involves

A
implementing a plan.
B
enforcing a plan.
C
developing a plan.
D
identifying a problem.
76

The chart shows a circular flow model describing the movement of goods and services.

Question illustration
T
The foreign sector influences how services move between firms and households.
T
The foreign sector influences how imports and exports move between firms and households.
T
The foreign sector influences how factors of production move between firms and households.
T
The foreign sector influences how goods move between firms and households.
77

Which situation is the best example of opportunity cost?

A
A country chooses to produce bananas instead of wheat.
B
A country chooses to invest in manufacturing and agriculture.
C
A country chooses to specialize in producing paper products.
D
A country chooses to export all of its products.
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"Development"

Answer:

33363

79

How have airplanes changed the way the world does business? Choose four answers.by shipping raw materials to manufacture goods in other countriesby shortening travel timeby opening up new trade markets worldwideby connecting business partners the fastestby increasing options for travel destinations

A
by shipping raw materials to manufacture goods in other countries
B
by shortening travel time
C
by opening up new trade markets worldwide
D
by connecting business partners the fastest
E
by increasing options for travel destinations
80

What makes enforcing safety standards a challenge for the Food and Drug Administration?

A
Many foods are imported from other countries, and the FDA must ensure those foods meet the same standards as US goods.
B
The FDA faces competition from the EPA, which sets standards for product labeling.
C
The FDA has no control over advertising laws, which may conflict with safety standard laws.
D
Many raw materials are exported to other countries, and the FDA must ensure those materials meet the same standards as international goods.

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