AnswersContemporary American Democracy B Q2 - CMSD IU1Unit Test

Unit Test — Unit test Answers

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1
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Trade agreements are helpful because they allow countries to

A
trade for necessary goods.
B
increase trade tax revenue.
C
influence foreign trade.
D
help create new trade barriers.
2
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four

b
by shipping raw materials to manufacture goods in other countries
b
by shortening travel time
b
by opening up new trade markets worldwide
b
by connecting business partners the fastest
b
by increasing options for travel destinations
3

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.
4

best

A
A US shoe company opens a factory in China and hires Chinese workers to make shoes.
A
A US shoe company opens a factory in the US and hires US workers to make shoes.
A
A US shoe company opens a factory in the US and hires Chinese workers to make shoes.
A
A Chinese shoe company opens a factory in China and hires Chinese workers to make shoes.
5

best

Question illustration
T
The US and Western Europe are strong because they have high GDPs.
T
The US and Western Europe are weak because they have low GDPs.
T
The US and Western Europe are strong because they have low GDPs.
T
The US and Western Europe are weak because they have high GDPs.
6

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
7

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

A
businesses.
B
consumers.
C
stock markets.
D
countries' currencies.
8

Which type of trade barrier is explicitly used for political purposes?

A
standards
B
embargoes
C
quotas
D
tariffs
9

The best time for Americans to import French cheese is when they can

A
exchange a combination of goods and US dollars for euros.
B
buy the most euros for US dollars.
C
buy the most US dollars for euros.
D
exchange US dollars for pesos and then for euros.
10

Gross Domestic ProductGrowth Dependence PolicyGained Domestic Production

A
Gross Domestic Product
B
Growth Dependence Policy
C
Gained Domestic Production
11

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.
12

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.
13

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.
14

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.
15

One primary purpose of the European Union is to

A
create a common market.
B
eliminate borders between countries.
C
allow highly skilled workers to be employed.
D
limit trade among member countries.
16

Aging populations can be a problem for developed countries because

A
there are fewer younger workers coming into the workforce.
B
most older workers demand top-level pay and full benefits.
C
many older people are skilled in manufacturing, not technology.
D
younger workers cannot find jobs when older people work longer.
17

Which is an example of a country that is overly dependent on another country for critical goods and services?

A
a country that imports all its oil
B
a country that imports all of its luxury goods
C
a country that licenses some television shows
D
a country that has some international businesses
18

Which trade organization is responsible for 90% of the world’s trade?

A
the EU
B
ASEAN
C
the WTO
D
NAFTA
19

How might foreign investment be problematic for a transitioning economy?

A
Foreign investment can temporarily slow economic growth.
B
It may be difficult to adjust to another nation’s influence.
C
A foreign government may seize control of the country.
D
The transitioning economy must adopt a foreign currency.
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.

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