D270 ch.4 Questions with Verified Correct
Answers
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
Answer: A
2) Which of the following is most likely a true statement about the global economy since
the 1980s?
A) Socialist governments are intervening more in global exchanges.
B) Wealthy countries are exercising total control over emerging markets.
C) Developing countries are losing growing shares of their foreign-exchange reserves.
D) Emerging economies are adopting the principles and practices of free markets.
Answer: D
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?
B) What are the current economic policies related to development?
C) What is the likelihood that Apex can fill manufacturing positions with locals?
D) What factors in the country drive or hinder economic change?
Answer: C
,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
Answer: B
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
Answer: A
6) The Economic Freedom Index indicates that economic freedom is positively
correlated with all of the following EXCEPT ________.
A) life expectancy
B) literacy
C) environmental sustainability
D) diversity
Answer: D
, 7) The recent global credit crisis has interrupted the trend of national economies
________.
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
Answer: B
8) History suggests that if the economic crisis worsens, we are likely to see more people
question the ________.
A) fall of communism
B) legitimacy of capitalism
C) practicality of mixed market economies
D) correlation between economic freedom and prosperity
Answer: B
9) According to research, which of the following countries is the strongest supporter of
free markets?
A) China
B) India
C) France
D) Ukraine
Answer: A
10) Which of the following is NOT a characteristic of capitalism?
A) private ownership of assets
B) right to profit from individual effort
Answers
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
Answer: A
2) Which of the following is most likely a true statement about the global economy since
the 1980s?
A) Socialist governments are intervening more in global exchanges.
B) Wealthy countries are exercising total control over emerging markets.
C) Developing countries are losing growing shares of their foreign-exchange reserves.
D) Emerging economies are adopting the principles and practices of free markets.
Answer: D
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?
B) What are the current economic policies related to development?
C) What is the likelihood that Apex can fill manufacturing positions with locals?
D) What factors in the country drive or hinder economic change?
Answer: C
,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
Answer: B
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
Answer: A
6) The Economic Freedom Index indicates that economic freedom is positively
correlated with all of the following EXCEPT ________.
A) life expectancy
B) literacy
C) environmental sustainability
D) diversity
Answer: D
, 7) The recent global credit crisis has interrupted the trend of national economies
________.
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
Answer: B
8) History suggests that if the economic crisis worsens, we are likely to see more people
question the ________.
A) fall of communism
B) legitimacy of capitalism
C) practicality of mixed market economies
D) correlation between economic freedom and prosperity
Answer: B
9) According to research, which of the following countries is the strongest supporter of
free markets?
A) China
B) India
C) France
D) Ukraine
Answer: A
10) Which of the following is NOT a characteristic of capitalism?
A) private ownership of assets
B) right to profit from individual effort
