K
C
LO
DAVIS D270 FINAL
YC
EXAMINATION PRACTICE
QUESTIONS AND CORRECT
D
DETAILED ANSWERS LATEST
U
UPDATE
ST
,1) The recent global economic crisis has led to which of the following?
A) governments seeking to impose more constraints on capitalism
B) governments seeking to eliminate constraints on capitalism
C) governments seeking to increase the interdependence of developing economies
D) governments seeking to eliminate the interdependence of developing economies -
ANS A) governments seeking to impose more constraints on capitalism
K
2) Which of the following is most likely a true statement about the global economy since
the 1980s?
C
A) Socialist governments are intervening more in global exchanges.
B) Wealthy countries are exercising total control over emerging markets.
LO
C) Developing countries are losing growing shares of their foreign-exchange reserves.
D) Emerging economies are adopting the principles and practices of free markets. -
ANS D) Emerging economies are adopting the principles and practices of free
markets.
YC
3) Kyle, an international manager for Apex Industries, has been given the task of
analyzing the economies of three different emerging countries for the firm's potential
expansion. Which of the following questions is LEAST relevant to Kyle's assignment?
A) How much freedom will Apex have to run its foreign operations?
D
B) What are the current economic policies related to development?
C) What is the likelihood that Apex can fill manufacturing positions with locals?
U
D) What factors in the country drive or hinder economic change? - ANS C) What is the
likelihood that Apex can fill manufacturing positions with locals?
ST
4) Managers at Morrison Manufacturing are considering expanding the firm's production
overseas and want to ensure that the firm is located in a country with a high degree of
economic freedom. Presently, which of the following locations would most likely offer
Morrison the highest economic freedom?
A) Mexico
B) Hong Kong
C) Venezuela
D) North Korea - ANS B) Hong Kong
,5) Since the late 1980s, the growing emergence of freer markets has been powered by
the realization that ________.
A) economic growth is directly related to economic freedom
B) economic growth has a limited effect on the standard of living
C) adoption of free market principles contributes to social injustices
D) centrally planned economies are best designed to deliver progress - ANS A)
economic growth is directly related to economic freedom
6) The Economic Freedom Index indicates that economic freedom is positively
K
correlated with all of the following EXCEPT ________.
C
A) life expectancy
B) literacy
C) environmental sustainability
LO
D) diversity - ANS D) diversity
7) The recent global credit crisis has interrupted the trend of national economies
________.
YC
A) rapidly adopting the command market model
B) steadily adopting the free market model
C) moving from the mixed to the command model
D) turning away from the mixed model - ANS B) steadily adopting the free market
model
D
8) History suggests that if the economic crisis worsens, we are likely to see more people
U
question the ________.
A) fall of communism
ST
B) legitimacy of capitalism
C) practicality of mixed market economies
D) correlation between economic freedom and prosperity - ANS B) legitimacy of
capitalism
9) According to research, which of the following countries is the strongest supporter of
free markets?
A) China
B) India
, C) France
D) Ukraine - ANS A) China
10) Which of the following is NOT a characteristic of capitalism?
A) private ownership of assets
B) right to profit from individual effort
C) state control of factors of production
D) private control of investment - ANS C) state control of factors of production
K
11) Communism primarily relies on a system of ________.
C
A) private business ownership
B) competitive pricing and marketing
C) market-generated supply and demand
LO
D) government controlled economic activity - ANS D) government controlled economic
activity
12) In a market economy, the patterns of resource allocation are most directly
influenced by ________.
YC
A) government administrators who monitor the equilibrium of supply and demand
B) industry coalitions that strive to improve the efficiency of production and service
C) consumer group alliances that negotiate with firms to improve product quality
D) consumers who "vote" by their personal decision to buy or not buy products - ANS
D
D) consumers who "vote" by their personal decision to buy or not buy products
U
13) A system in which individuals, rather than the government, make the majority of
economic decisions is commonly referred to as a ________.
ST
A) command economy
B) market economy
C) private economy
D) mixed economy - ANS B) market economy
14) Market economies are primarily characterized by ________.
A) formal cooperation among government, companies, and workers to achieve stable
growth
B) heavy government spending and high taxation to pay for a range of social services
C
LO
DAVIS D270 FINAL
YC
EXAMINATION PRACTICE
QUESTIONS AND CORRECT
D
DETAILED ANSWERS LATEST
U
UPDATE
ST
,1) The recent global economic crisis has led to which of the following?
A) governments seeking to impose more constraints on capitalism
B) governments seeking to eliminate constraints on capitalism
C) governments seeking to increase the interdependence of developing economies
D) governments seeking to eliminate the interdependence of developing economies -
ANS A) governments seeking to impose more constraints on capitalism
K
2) Which of the following is most likely a true statement about the global economy since
the 1980s?
C
A) Socialist governments are intervening more in global exchanges.
B) Wealthy countries are exercising total control over emerging markets.
LO
C) Developing countries are losing growing shares of their foreign-exchange reserves.
D) Emerging economies are adopting the principles and practices of free markets. -
ANS D) Emerging economies are adopting the principles and practices of free
markets.
YC
3) Kyle, an international manager for Apex Industries, has been given the task of
analyzing the economies of three different emerging countries for the firm's potential
expansion. Which of the following questions is LEAST relevant to Kyle's assignment?
A) How much freedom will Apex have to run its foreign operations?
D
B) What are the current economic policies related to development?
C) What is the likelihood that Apex can fill manufacturing positions with locals?
U
D) What factors in the country drive or hinder economic change? - ANS C) What is the
likelihood that Apex can fill manufacturing positions with locals?
ST
4) Managers at Morrison Manufacturing are considering expanding the firm's production
overseas and want to ensure that the firm is located in a country with a high degree of
economic freedom. Presently, which of the following locations would most likely offer
Morrison the highest economic freedom?
A) Mexico
B) Hong Kong
C) Venezuela
D) North Korea - ANS B) Hong Kong
,5) Since the late 1980s, the growing emergence of freer markets has been powered by
the realization that ________.
A) economic growth is directly related to economic freedom
B) economic growth has a limited effect on the standard of living
C) adoption of free market principles contributes to social injustices
D) centrally planned economies are best designed to deliver progress - ANS A)
economic growth is directly related to economic freedom
6) The Economic Freedom Index indicates that economic freedom is positively
K
correlated with all of the following EXCEPT ________.
C
A) life expectancy
B) literacy
C) environmental sustainability
LO
D) diversity - ANS D) diversity
7) The recent global credit crisis has interrupted the trend of national economies
________.
YC
A) rapidly adopting the command market model
B) steadily adopting the free market model
C) moving from the mixed to the command model
D) turning away from the mixed model - ANS B) steadily adopting the free market
model
D
8) History suggests that if the economic crisis worsens, we are likely to see more people
U
question the ________.
A) fall of communism
ST
B) legitimacy of capitalism
C) practicality of mixed market economies
D) correlation between economic freedom and prosperity - ANS B) legitimacy of
capitalism
9) According to research, which of the following countries is the strongest supporter of
free markets?
A) China
B) India
, C) France
D) Ukraine - ANS A) China
10) Which of the following is NOT a characteristic of capitalism?
A) private ownership of assets
B) right to profit from individual effort
C) state control of factors of production
D) private control of investment - ANS C) state control of factors of production
K
11) Communism primarily relies on a system of ________.
C
A) private business ownership
B) competitive pricing and marketing
C) market-generated supply and demand
LO
D) government controlled economic activity - ANS D) government controlled economic
activity
12) In a market economy, the patterns of resource allocation are most directly
influenced by ________.
YC
A) government administrators who monitor the equilibrium of supply and demand
B) industry coalitions that strive to improve the efficiency of production and service
C) consumer group alliances that negotiate with firms to improve product quality
D) consumers who "vote" by their personal decision to buy or not buy products - ANS
D
D) consumers who "vote" by their personal decision to buy or not buy products
U
13) A system in which individuals, rather than the government, make the majority of
economic decisions is commonly referred to as a ________.
ST
A) command economy
B) market economy
C) private economy
D) mixed economy - ANS B) market economy
14) Market economies are primarily characterized by ________.
A) formal cooperation among government, companies, and workers to achieve stable
growth
B) heavy government spending and high taxation to pay for a range of social services
