D270 DAVIS FINAL EXAM WITH
VERIFIED ANSWERS
QUESTIONS AND 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
VERIFIED ANSWERS
QUESTIONS AND 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
