Economics Ch 1 & 2 Review

Front

All of the following are benefits globalization offers EXCEPT: Consumers have greater variety of cheap goods, United States can use resources to improve technology, Bangladesh citizens have opportunity to earn money.

Back

The United States reduces manufacturing jobs in the country.

Front

All of the following are negative results of globalization EXCEPT: poor countries are exploited for cheap labor, developed countries lose jobs, must rely on other countries/disruptions to supply chain.

Back

jobs created in developing countries

Front

The free enterprise system is efficient. Which of the following statements is NOT true concerning the free enterprise system: Resources will not be wasted making goods and services that are not wanted, When a market has too many businesses, one will go out of business, Government officials will not allow a business to open if there is not enough demand, Citizens are free to take risks when they identify an opportunity in a new market.

Back

Government officials will not allow a business to open if there is not enough demand

Front

Which economic system involves an entrepreneur taking the risk to open a grocery store, buying a building and food to stock the shelves, and hiring workers, with no guarantees of customers but no limits on profits?

Back

market economy

Front

What type of economy is characterized by communal land ownership passed down through inheritance, as seen in Samoa where 90% of the land is owned by aiga (family) and non-natives cannot own land?

Back

Traditional economy

Front

During the 1960s in China, the farmers lived on collective farms. The farmers were considered government workers harvesting government crops.

Back

Command economy

Front

Which economic system is described by a private company like McDonalds deciding its menu and prices, while the government mandates a minimum wage and sets limits on worker hours?

Back

Mixed economy