Answers2526 Full 2102320 Economics HONORS NEW CREDITUnit Test

Unit Test — Unit test Answers

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1
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Which situation might cause a country to specialize?

A
bananas grown far from major transportation
B
seafood in an area with few fishing vessels
C
electronics in a city with few trained workers
D
wheat production in a region with fertile soil
2
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Why were free trade zones created in China?

A
to avoid governmental rules and conditions
B
to attract investments by foreign countries
C
to import technology more easily
D
to control imports and exports
3

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.
4

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.
5

Why do most countries both export and import goods?

A
to eliminate competition from other economies
B
to decrease the production of goods domestically
C
to rely entirely on foreign economies
D
to get a good mix of goods and services
6

Purchasing power parity is used to compare the gross domestic product between

A
businesses.
B
consumers.
C
stock markets.
D
countries' currencies.
7

Which statements accurately describe a country’s currency? Select all that apply.The currency is easily divisible.The currency can be used in any other country.The currency has a value that can change.The currency has denominations.The currency has a value that must stay the same.

A
The currency is easily divisible.
B
The currency can be used in any other country.
C
The currency has a value that can change.
D
The currency has denominations.
E
The currency has a value that must stay the same.
8

Read the conclusion to an informative essay about globalization in China.Globalization has led to economic growth in China, and these changes have in turn led to rising populations and growing industrialization. Data demonstrates that air-pollution levels have grown in many major cities because of these changes. While this growth has led to many improvements in China’s economy, the problem of air pollution must be solved in the future.Which statement best explains why this conclusion is effective?

A
It restates evidence briefly and provides a final opinion.
B
It restates evidence briefly and establishes a new thesis.
C
It cites sources properly and provides a final opinion.
D
It cites sources properly and provides clear examples.
9

Technologies that allow for instant worldwide communication include

h
high-speed trains and naval ships.
m
mobile phones and Internet access.
a
airplanes and container shipping.
o
outsourcing and new trade markets.
10

Why are environmental problems common in developing countries?

A
The citizens of developing countries have not been educated about the dangers of pollution and the need to protect resources.
B
People in developing countries travel long distances by car to get to work and school, leading to air pollution and habitat destruction.
C
Rapid growth of new industries and technology has led to an enormous increase in environmental woes in developing countries.
D
Developing countries often specialize in manufacturing and providing raw materials, which can seriously harm the environment.
11

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.
12

What is an example of a country that makes use of another nation’s currency?

A
France
B
Germany
C
Panama
D
Mexico
13

The chart below shows an exchange rate table.

Question illustration
A
US dollar.
B
Swiss franc.
C
Japanese yen.
D
euro.
14

Which best describes ASEAN?

A
an international organization promoting free trade
B
a regional organization promoting growth in Southeast Asia
C
an international organization trying to establish a common currency
D
a regional organization establishing free trade between Canada and Mexico
15

What characterizes developing economies? Check all that apply.a growing industrial economya low level of reliance on natural resourcesa drop in the standard of livinga focus on agricultural activitya shrinking middle class

A
a growing industrial economy
B
a low level of reliance on natural resources
C
a drop in the standard of living
D
a focus on agricultural activity
E
a shrinking middle class
16

Which best describes how standards help domestic producers?

A
Standards require goods to meet basic requirements.
B
Standards provide financial support for producers.
C
Standards restrict the import of cheap goods.
D
Standards offer incentives to ensure high quality.
17

What is the benefit in reaching the absolute advantage in the production of one good?

A
to produce more units of a good than other countries
B
to produce fewer units of a good than other countries
C
to produce more units of a good while using fewer resources
D
to produce fewer units of a good while using fewer resources
18

In a transitioning economy, what is a downside of rapid economic growth?

A
Rapid economic growth can be difficult to regulate.
B
Rapid economic growth benefits only the wealthy.
C
Rapid economic growth usually leads to a crash.
D
Rapid economic growth may stifle cultural growth.
19

What is the purpose of quotas?

A
to ban all imports from a country
B
to ensure specific goods are not available to consumers
C
to limit how much of a good can be imported
D
to keep prices on domestic goods low
20

Why might developed economies want to outsource manufacturing and other jobs to developing economies?

A
Developed economies can find more inexpensive labor in developing economies.
B
Developed economies are responsible for helping developing economies progress.
C
Developed economies focus only on service, not manufacturing, so they must outsource.
D
Developing economies produce higher-quality goods, so it makes sense to outsource.

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