Answers2026-2027 FBISD - EconomicsEconomic Development

Economic Development — Unit test Answers

0 verified answers4 views
21
Free Preview

A treaty that can be signed between two or more countries to lower tariffs and improve the import and export of goods is a free trade .

Answer not available
22
Free Preview

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
23

It’s important for countries to exchange currencies so that goods from other nations can be

A
manufactured.
B
destroyed.
C
traded.
D
regulated.
24

How has globalization made countries more interdependent? Choose five answers.

A
Countries now rely on one another for vital resources.
B
Countries now rely on each other for new industries.
C
Countries now rely on one another for chances to import and export.
D
Countries now rely on one another to lower their GDP.
E
Countries rely on each other for cheaper products.
F
Countries now rely on one another for an employment base.
25

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.
26

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.
27

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.
28

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.
29

Technologies that allow for instant worldwide communication include

A
high-speed trains and naval ships.
B
mobile phones and Internet access.
C
airplanes and container shipping.
D
outsourcing and new trade markets.
30

It takes brothers John and Dan the same amount of time to clean the room they share, but John can mow the lawn faster than Dan. Which action would allow them to take advantage of their respective comparative advantages?

A
them both sharing each task equally
B
John mowing the lawn and Dan cleaning their room
C
Dan mowing the lawn and John cleaning their room
D
Dan doing both tasks
31

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.
32

How can a nation benefit from effectively exporting its goods?

A
Its citizens can buy cheaper goods.
B
Its businesses can invest in the future.
C
Its domestic spending increases.
D
Its citizens have more money.
33

International trade organizations promote free trade by encouraging countries to

A
maintain their tariffs.
B
establish their trade quotas.
C
reduce their trade barriers.
D
develop their products.
34

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.
35

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.
36

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

A
France
B
Germany
C
Panama
D
Mexico
37

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.
38

What is one stated purpose of the World Trade Organization?

A
to create a common currency
B
to encourage the expansion of exports
C
to monitor trade policies of many countries
D
to establish direct trade agreements between countries
39

The chart below shows an exchange rate table.

Question illustration
A
less than a pound
B
more than a pound
C
exactly one pound
D
about eight pounds
40

What can be a result of free trade? Check all that apply.

A
trade imbalances
B
decreased production
C
lower economic growth
D
increased pollution
E
exploitation of workers
F
new opportunities

Did you find these answers helpful?

More from this Course

Quiz
69 verified answers

Unit 5 Test

Quiz
25 verified answers

Unit Test

Quiz
40 verified answers

Cumulative Exam