Davis D270 Final
1. 1) The recent global economic crisis has led to which A) governments
of the following? seeking to impose
more constraints
A) governments seeking to impose more constraints on capitalism
on capitalism
B) governments seeking to eliminate constraints on
capitalism
C) governments seeking to increase the interdepen-
dence of developing economies
D) governments seeking to eliminate the interdepen-
dence of developing economies
2. 2) Which of the following is most likely a true state- D) Emerging
ment about the global economy since the 1980s? economies are
adopting the prin-
A) Socialist governments are intervening more in ciples and prac-
global exchanges. tices of free mar-
B) Wealthy countries are exercising total control over kets.
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.
3. 3) Kyle, an international manager for Apex Industries, C) What is the like-
has been given the task of analyzing the economies lihood that Apex
of three different emerging countries for the firm's can fill manu-
potential expansion. Which of the following questions facturing positions
is LEAST relevant to Kyle's assignment? with locals?
A) How much freedom will Apex have to run its for-
eign operations?
B) What are the current economic policies related to
development?
C) What is the likelihood that Apex can fill manufac-
turing positions with locals?
D) What factors in the country drive or hinder eco-
nomic change?
, Davis D270 Final
4. 4) Managers at Morrison Manufacturing are consid- B) Hong Kong
ering 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
5. 5) Since the late 1980s, the growing emergence of A) economic
freer markets has been powered by the realization growth is direct-
that . ly related to eco-
nomic freedom
A) economic growth is directly related to economic
freedom
B) economic growth has a limited effect on the stan-
dard of living
C) adoption of free market principles contributes to
social injustices
D) centrally planned economies are best designed to
deliver progress
6. 6) The Economic Freedom Index indicates that eco- D) diversity
nomic freedom is positively correlated with all of the
following EXCEPT .
A) life expectancy
B) literacy
C) environmental sustainability
D) diversity
7. 7) The recent global credit crisis has interrupted the B) steadily adopt-
trend of national economies . ing the free market
model
A) rapidly adopting the command market model
B) steadily adopting the free market model
, Davis D270 Final
C) moving from the mixed to the command model
D) turning away from the mixed model
8. 8) History suggests that if the economic crisis wors- B) legitimacy of
ens, we are likely to see more people question the capitalism
.
A) fall of communism
B) legitimacy of capitalism
C) practicality of mixed market economies
D) correlation between economic freedom and pros-
perity
9. 9) According to research, which of the following A) China
countries is the strongest supporter of free markets?
A) China
B) India
C) France
D) Ukraine
10. 10) Which of the following is NOT a characteristic of C) state control of
capitalism? factors of produc-
tion
A) private ownership of assets
B) right to profit from individual effort
C) state control of factors of production
D) private control of investment
11. 11) Communism primarily relies on a system of D) government
. controlled eco-
nomic activity
A) private business ownership
B) competitive pricing and marketing
C) market-generated supply and demand
D) government controlled economic activity
12. 12) In a market economy, the patterns of resource D) consumers
allocation are most directly influenced by . who "vote" by their
personal decision
, Davis D270 Final
A) government administrators who monitor the equi- to buy or not buy
librium of supply and demand products
B) industry coalitions that strive to improve the effi-
ciency 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
13. 13) A system in which individuals, rather than the B) market econo-
government, make the majority of economic deci- my
sions is commonly referred to as a .
A) command economy
B) market economy
C) private economy
D) mixed economy
14. 14) Market economies are primarily characterized by C) minimal gov-
. ernmental partici-
pation
A) formal cooperation among government, compa-
nies, and workers to achieve stable growth
B) heavy government spending and high taxation to
pay for a range of social services
C) minimal governmental participation
D) restricted consumer powers
15. 15) In a command economy, the goods and services A) government of-
that a country produces, the quantity in which they ficials
are produced, and the prices at which they are sold
are planned by .
A) government officials
B) private industries
C) individual entrepreneurs
D) local trade associations
16. 16) In a command economy, . B) the government
sets goals and de-
1. 1) The recent global economic crisis has led to which A) governments
of the following? seeking to impose
more constraints
A) governments seeking to impose more constraints on capitalism
on capitalism
B) governments seeking to eliminate constraints on
capitalism
C) governments seeking to increase the interdepen-
dence of developing economies
D) governments seeking to eliminate the interdepen-
dence of developing economies
2. 2) Which of the following is most likely a true state- D) Emerging
ment about the global economy since the 1980s? economies are
adopting the prin-
A) Socialist governments are intervening more in ciples and prac-
global exchanges. tices of free mar-
B) Wealthy countries are exercising total control over kets.
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.
3. 3) Kyle, an international manager for Apex Industries, C) What is the like-
has been given the task of analyzing the economies lihood that Apex
of three different emerging countries for the firm's can fill manu-
potential expansion. Which of the following questions facturing positions
is LEAST relevant to Kyle's assignment? with locals?
A) How much freedom will Apex have to run its for-
eign operations?
B) What are the current economic policies related to
development?
C) What is the likelihood that Apex can fill manufac-
turing positions with locals?
D) What factors in the country drive or hinder eco-
nomic change?
, Davis D270 Final
4. 4) Managers at Morrison Manufacturing are consid- B) Hong Kong
ering 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
5. 5) Since the late 1980s, the growing emergence of A) economic
freer markets has been powered by the realization growth is direct-
that . ly related to eco-
nomic freedom
A) economic growth is directly related to economic
freedom
B) economic growth has a limited effect on the stan-
dard of living
C) adoption of free market principles contributes to
social injustices
D) centrally planned economies are best designed to
deliver progress
6. 6) The Economic Freedom Index indicates that eco- D) diversity
nomic freedom is positively correlated with all of the
following EXCEPT .
A) life expectancy
B) literacy
C) environmental sustainability
D) diversity
7. 7) The recent global credit crisis has interrupted the B) steadily adopt-
trend of national economies . ing the free market
model
A) rapidly adopting the command market model
B) steadily adopting the free market model
, Davis D270 Final
C) moving from the mixed to the command model
D) turning away from the mixed model
8. 8) History suggests that if the economic crisis wors- B) legitimacy of
ens, we are likely to see more people question the capitalism
.
A) fall of communism
B) legitimacy of capitalism
C) practicality of mixed market economies
D) correlation between economic freedom and pros-
perity
9. 9) According to research, which of the following A) China
countries is the strongest supporter of free markets?
A) China
B) India
C) France
D) Ukraine
10. 10) Which of the following is NOT a characteristic of C) state control of
capitalism? factors of produc-
tion
A) private ownership of assets
B) right to profit from individual effort
C) state control of factors of production
D) private control of investment
11. 11) Communism primarily relies on a system of D) government
. controlled eco-
nomic activity
A) private business ownership
B) competitive pricing and marketing
C) market-generated supply and demand
D) government controlled economic activity
12. 12) In a market economy, the patterns of resource D) consumers
allocation are most directly influenced by . who "vote" by their
personal decision
, Davis D270 Final
A) government administrators who monitor the equi- to buy or not buy
librium of supply and demand products
B) industry coalitions that strive to improve the effi-
ciency 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
13. 13) A system in which individuals, rather than the B) market econo-
government, make the majority of economic deci- my
sions is commonly referred to as a .
A) command economy
B) market economy
C) private economy
D) mixed economy
14. 14) Market economies are primarily characterized by C) minimal gov-
. ernmental partici-
pation
A) formal cooperation among government, compa-
nies, and workers to achieve stable growth
B) heavy government spending and high taxation to
pay for a range of social services
C) minimal governmental participation
D) restricted consumer powers
15. 15) In a command economy, the goods and services A) government of-
that a country produces, the quantity in which they ficials
are produced, and the prices at which they are sold
are planned by .
A) government officials
B) private industries
C) individual entrepreneurs
D) local trade associations
16. 16) In a command economy, . B) the government
sets goals and de-
