CBA300 M5-7 EXAM STUDY SET
Only in communist countries do governments own the factors of production. - ANSWER
F
When the U.S. military contracts out security details in war zones, it is engaged in
privatization. - ANSWER T
A government nationalizes a firm when it shifts the ownership from public to private. -
ANSWER F
Recently, many governments, including the U.S. government, have contracted out
certain services to private companies. - ANSWER T
Terrorists avoid kidnapping because the repercussions can be harmful to their
movement. - ANSWER F
Policy continuity and government stability are more important to a business than the
type of political system. - ANSWER T
When people are kidnapped for ransom, all governments agree that the right response
is to pay the ransom, get the hostages released, and then retaliate. - ANSWER F
The national defense argument for trade restrictions is based on the development level
of the country. - ANSWER
The level of development is not important with regard to trade restrictions. A nation
would protect its own industry, even though foreign nations could be more advanced in
the sector. - ANSWER
Sanctions are a trade restriction that is effective in forcing change. - ANSWER
Fair competition is a strong rationale for trade barriers. - ANSWER
Retaliatory trade restrictions are not made for dumping because price competition is
protected by the WTO. - ANSWER
Subsidies are implemented by the government to a domestic firm as a way to encourage
exports or protect the firm from imports. - ANSWER
Voluntary export restraints are imposed by the importing nation to avoid violating WTO
rules. - ANSWER
A quota is an example of a qualitative nontariff barrier. - ANSWER
Democratic nations that follow free-trade capitalism sometimes nationalize businesses,
such as
, A) the U.S. bailout during the 2009 financial crisis, when the U.S. government took
control of several large U.S. corporations.
B) Canada's purchase of Hershey.
C) The French purchase of Totale.
D) the move from New York to Russia of a major sports team owned by a Russian. -
ANSWER
Examples of expropriation without compensation involve the following governments:
A) the Unite States confiscated Iranian property in the United States and Cuba
confiscated property during the Cuban revolution of the 1950s, and Zimbabwe
confiscated land owned by white Zimbabwean citizens.
B) China with Hong Kong and Japan with the Kuril Islands.
C) the United Kingdom with the Falklands.
D) Canada with northern Maine. - ANSWER
This country engaged in many privatizations in the aftermath of the 2008‒2009 financial
crisis.
A) Greece
B) Germany
C) the United Kingdom
D) Portugal - ANSWER
When governments nationalize a firm, they don't seek to
A) extract more money from the firm.
B) increase the firm's profitability.
C) preserve jobs.
D) sell the firm to foreign investors - ANSWER
When a government transfers the assets of a company from the public sector to the
private sector, it is an example of
A) privatization.
B) isolationism.
C) expansionism.
Only in communist countries do governments own the factors of production. - ANSWER
F
When the U.S. military contracts out security details in war zones, it is engaged in
privatization. - ANSWER T
A government nationalizes a firm when it shifts the ownership from public to private. -
ANSWER F
Recently, many governments, including the U.S. government, have contracted out
certain services to private companies. - ANSWER T
Terrorists avoid kidnapping because the repercussions can be harmful to their
movement. - ANSWER F
Policy continuity and government stability are more important to a business than the
type of political system. - ANSWER T
When people are kidnapped for ransom, all governments agree that the right response
is to pay the ransom, get the hostages released, and then retaliate. - ANSWER F
The national defense argument for trade restrictions is based on the development level
of the country. - ANSWER
The level of development is not important with regard to trade restrictions. A nation
would protect its own industry, even though foreign nations could be more advanced in
the sector. - ANSWER
Sanctions are a trade restriction that is effective in forcing change. - ANSWER
Fair competition is a strong rationale for trade barriers. - ANSWER
Retaliatory trade restrictions are not made for dumping because price competition is
protected by the WTO. - ANSWER
Subsidies are implemented by the government to a domestic firm as a way to encourage
exports or protect the firm from imports. - ANSWER
Voluntary export restraints are imposed by the importing nation to avoid violating WTO
rules. - ANSWER
A quota is an example of a qualitative nontariff barrier. - ANSWER
Democratic nations that follow free-trade capitalism sometimes nationalize businesses,
such as
, A) the U.S. bailout during the 2009 financial crisis, when the U.S. government took
control of several large U.S. corporations.
B) Canada's purchase of Hershey.
C) The French purchase of Totale.
D) the move from New York to Russia of a major sports team owned by a Russian. -
ANSWER
Examples of expropriation without compensation involve the following governments:
A) the Unite States confiscated Iranian property in the United States and Cuba
confiscated property during the Cuban revolution of the 1950s, and Zimbabwe
confiscated land owned by white Zimbabwean citizens.
B) China with Hong Kong and Japan with the Kuril Islands.
C) the United Kingdom with the Falklands.
D) Canada with northern Maine. - ANSWER
This country engaged in many privatizations in the aftermath of the 2008‒2009 financial
crisis.
A) Greece
B) Germany
C) the United Kingdom
D) Portugal - ANSWER
When governments nationalize a firm, they don't seek to
A) extract more money from the firm.
B) increase the firm's profitability.
C) preserve jobs.
D) sell the firm to foreign investors - ANSWER
When a government transfers the assets of a company from the public sector to the
private sector, it is an example of
A) privatization.
B) isolationism.
C) expansionism.
