D 270 Final
1.If the United States government prohibits all trade on a whole category of products
to Peru, that would be called a ______
a. Quota
b. Import certification hold
c. VER
d. Sanction
e. Embargo - CORRECT ANSWER-E
2.The coronavirus caused a dramatic economic slow-down around the world. History
suggests that when an economic crisis gets worse, it is very likely that more citizens
question the ____.
a. Fall of communism
b. Correlation between economic freedom and prosperity
c. Practicality of mixed-market economies
d. Legitimacy of capitalism - CORRECT ANSWER-D
3.Your friend asks you to explain what problem might happen if Mexico decides to
use trade protectionism to help make Mexico's industries more competitive in
international markets. What problem would Mexico have?
a. Assistance should be given only if entry barriers to new firms are very low
b. A short product life-cycle makes the industry quickly noncompetitive
c. It is difficult to identify industries that have a high probability of reaching
competitiveness
d. The protecting countries companies always become domestic competitors -
CORRECT ANSWER-C
4.All of the following statements are true about the G20 countries EXCEPT:???
a. More than half of the world's population live in G20 countries
b. Less than half of the world's poor people live in G20 countries
c. They have over 75% of the worlds global trade
d. They have pro business policies
e. All the statements are true - CORRECT ANSWER-B
5.Which of the following is not a characteristic of capitalism?
a. Right to profit from individual effort
b. Private ownership of assets
c. Private control of investment
d. State control of factors of production - CORRECT ANSWER-D
, 6. Kyle, a Vice President for Ford Motor Company, a U.S. corporation, read a news
story today that said the U.S. government is considering ending the chicken tax. Why
would Kyle be concerned about this news?
a. Removing the chicken tax will allow pick up trucks from foreign countries to be
sold at a lower price in the USA - CORRECT ANSWER-A
7...(top of question not listed)........marketplace. Julie is asked by her boss to make a
list of the
economic characteristics of an 'emerging country' . Which of the following
characteristics should Julie have on her list?
I. Accelerating growth
II. Increasing FID
III. Increasing Imports
IV. Increasing Exports
V. Decreasing Exports
VI. Expanding consumption
VII. Decreasing Consumption
VIII. Growing Middle class
IX. Decreasing middle class - CORRECT ANSWER-I, II, III, IV, VI, VIII
8.It is important to analyze the purchasing power of parity of a country because:
a. People in different countries decide to buy different items
b. To understand what people buy in different countries
c. To understand the effect that imports will have on the GDP
d. There are currency effects when buying the same items in different countries
e. Big macs are more expensive in some countries - CORRECT ANSWER-D
9. A luxury bag company from France decided to lower its export price to Australia to
help compensate for import tariffs being placed on their bag, this is an example of:
a. Economic quota action theory
b. Dumping
c. Essential-industry argument
d. Optimum-Tariff theory
e. Anti-dumping practice - CORRECT ANSWER-D
10.Command economics can:
a. Never outperform free markets
b. Outperform free markets for long periods of time
c. Outperform free markets for short periods of time
1.If the United States government prohibits all trade on a whole category of products
to Peru, that would be called a ______
a. Quota
b. Import certification hold
c. VER
d. Sanction
e. Embargo - CORRECT ANSWER-E
2.The coronavirus caused a dramatic economic slow-down around the world. History
suggests that when an economic crisis gets worse, it is very likely that more citizens
question the ____.
a. Fall of communism
b. Correlation between economic freedom and prosperity
c. Practicality of mixed-market economies
d. Legitimacy of capitalism - CORRECT ANSWER-D
3.Your friend asks you to explain what problem might happen if Mexico decides to
use trade protectionism to help make Mexico's industries more competitive in
international markets. What problem would Mexico have?
a. Assistance should be given only if entry barriers to new firms are very low
b. A short product life-cycle makes the industry quickly noncompetitive
c. It is difficult to identify industries that have a high probability of reaching
competitiveness
d. The protecting countries companies always become domestic competitors -
CORRECT ANSWER-C
4.All of the following statements are true about the G20 countries EXCEPT:???
a. More than half of the world's population live in G20 countries
b. Less than half of the world's poor people live in G20 countries
c. They have over 75% of the worlds global trade
d. They have pro business policies
e. All the statements are true - CORRECT ANSWER-B
5.Which of the following is not a characteristic of capitalism?
a. Right to profit from individual effort
b. Private ownership of assets
c. Private control of investment
d. State control of factors of production - CORRECT ANSWER-D
, 6. Kyle, a Vice President for Ford Motor Company, a U.S. corporation, read a news
story today that said the U.S. government is considering ending the chicken tax. Why
would Kyle be concerned about this news?
a. Removing the chicken tax will allow pick up trucks from foreign countries to be
sold at a lower price in the USA - CORRECT ANSWER-A
7...(top of question not listed)........marketplace. Julie is asked by her boss to make a
list of the
economic characteristics of an 'emerging country' . Which of the following
characteristics should Julie have on her list?
I. Accelerating growth
II. Increasing FID
III. Increasing Imports
IV. Increasing Exports
V. Decreasing Exports
VI. Expanding consumption
VII. Decreasing Consumption
VIII. Growing Middle class
IX. Decreasing middle class - CORRECT ANSWER-I, II, III, IV, VI, VIII
8.It is important to analyze the purchasing power of parity of a country because:
a. People in different countries decide to buy different items
b. To understand what people buy in different countries
c. To understand the effect that imports will have on the GDP
d. There are currency effects when buying the same items in different countries
e. Big macs are more expensive in some countries - CORRECT ANSWER-D
9. A luxury bag company from France decided to lower its export price to Australia to
help compensate for import tariffs being placed on their bag, this is an example of:
a. Economic quota action theory
b. Dumping
c. Essential-industry argument
d. Optimum-Tariff theory
e. Anti-dumping practice - CORRECT ANSWER-D
10.Command economics can:
a. Never outperform free markets
b. Outperform free markets for long periods of time
c. Outperform free markets for short periods of time
