MC: The Global Economy Review

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The higher a country’s gross domestic product (GDP), the more likely it is that the country

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is developed.

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A mixed-market economy is one in which

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there is competition and free enterprise.

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How do trade agreements help the countries involved? Options: by restricting imports, by accelerating production, by expanding tax revenues, by decreasing trade barriers

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by decreasing trade barriers

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Which organization created a shared economy? Options: European Union, World Trade Organization, North American Free Trade Agreements, Association of Southeast Asian Nations

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European Union

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Which best describes why governments enact tariffs?

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to discourage consumers from purchasing foreign goods

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Embargoes, quotas, and standards are tools that countries use to restrict imports.

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to restrict imports.

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Businesses can use globalization to their advantage by: finding customers in other countries.

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finding customers in other countries.

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If it becomes less expensive to travel overseas from the United States, American tourists will benefit from the fact that

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the US dollar has become stronger.

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Which situation is an example of comparative advantage in an international market? Options: Country A decides to grow extra potatoes so they have more to export, while Country B does not grow potatoes to export., Factories in Country A and Country B produce the same number of tablet computers. Country A’s factories could be used instead to build more laptops than the factories in Country B., Country A invests in a new technology while Country B chooses to invest in education., Country A can produce 100 units of rice per acre of farmland, while Country B can only produce 70 units of rice per acre of farmland using the same resources.

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Factories in Country A and Country B produce the same number of tablet computers. Country A’s factories could be used instead to build more laptops than the factories in Country B.

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If Country A is an agricultural country and Country B has many cities and factories, it would make sense for

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Country A to specialize in growing corn while Country B specializes in making cars.