Answers25-26 Economics DLOC – 3054111Unit Test

Unit Test — Unit test Answers

25 verified answers2 views
1
Free Preview

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.
2
Free Preview

importeddomestic

A
imported
B
domestic
3

Which technologies have made global communication instant and more effective? Choose three answers.social mediawireless devicessmart phonesautomobilesprinted newspapers

A
social media
B
wireless devices
C
smart phones
D
automobiles
E
printed newspapers
4

In a transitional economy, a(n) ________ economy is changing to a mixed-market economy.

A
advanced
B
command
C
free-market
D
developed
5

Why do countries provide financial incentives?

A
Financial incentives act as trade barriers.
B
Financial incentives limit imports.
C
Financial incentives set standards.
D
Financial incentives restrict all trade.
6

On which country has the United States imposed an embargo since 1960?

A
Cuba
B
Iran
C
North Korea
D
Syria
7

Often duties and taxes are imposed on cars that are imported from other countries. What types of incentives are these duties and taxes?

A
positive incentive and subsidy.
B
negative incentive and subsidy.
C
positive incentive and tariff.
D
negative incentive and tariff.
8

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
rising inflation.
B
price deflation.
C
declining inflation.
D
increased imports.
9

One primary purpose of the European Union is to

c
create a common market.
e
eliminate borders between countries.
a
allow highly skilled workers to be employed.
l
limit trade among member countries.
10

Gross domestic product tracks economic growth by measuring all goods and services

A
exported by an economy.
B
produced by an economy.
C
imported by an economy.
D
purchased by an economy.
11

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.
12

What is the most common reason why countries create trade agreements?

A
to limit imports
B
to create free trade
C
to establish quotas
D
to decrease trade
13

Who decides which currency each country in the world uses?

A
the United Nations
B
each individual country
C
the European Union
D
the United States
14

There would be no separation between one country’s economy and another’s if the entire world

A
shared the same currency.
B
chose paper currency over coins.
C
eliminated denominations for currency.
D
agreed to use only two types of currency.
15

One social issue often facing developing countries is

A
democratic rule is easily obtainable.
B
reluctance to accept change.
C
a shortage of natural resources.
D
very high population growth.
16

How do quotas help domestic producers?

A
Quotas facilitate increased exports of domestic goods.
B
Quotas lower the cost of domestic goods.
C
Quotas limit the number of producers that compete in a sector.
D
Quotas facilitate the sale of more domestic goods.
17

The table compares two countries and two products.

Question illustration
A
focus both on its petroleum and seafood industries
B
focus on the seafood industry only
C
focus on the petroleum industry only
D
decide to find another industry to focus on
18

What does the International Monetary Fund (IMF) seek to accomplish for developing countries?

A
The IMF establishes industries and technologies in developing countries.
B
The IMF helps a developing country’s citizens establish bank accounts.
C
The IMF gives college aid to qualified individuals in developing countries.
D
The IMF provides economic advice and loans to developing countries.
19

What role does competition play in international trade?

A
It results in higher prices.
B
It discourages imports.
C
It drives down prices for consumers.
D
It does away with the need for investment.
20

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.

Did you find these answers helpful?

More from this Course

Quiz
25 verified answers

Unit Test

Quiz
25 verified answers

Unit Test

RC
25 verified answers

Cumulative Exam