Econ Unit 3 Test Review (Macroeconomics)

Which of the following is not correct about "outsourcing?"

• It involves a company hiring another country to do certain work activities.

• It can reduce labor costs.

• It increases costs of producing goods/ services.

• Companies that outsource often open branches in developing countries.

Define outsourcing.

• The process by which businesses or other organizations develop international influence or start operating on an international scale
• The action of making or manufacturing from components or raw materials, or the process of being so manufactured.
• A practice used by different companies to reduce costs by transferring portions of work to outside suppliers rather than completing it internally.

Which of the following regions includes mostly developing nations?

• Sub-Saharan African countries

• Europe

• North America

• Scandinavian countries

Which of the following is a true statement about the economic development of nations?

• Resources and technology influence the economic development and quality of life of nations.

• Although important, the economic development of nations has little effect on the quality of life of its people.

• Modern technology is so widespread today that most people around the world have an acceptable quality of life.

• All but a few countries are developed

  nations today.

Import means

• buying goods from another country
• selling goods to another country
• only making one kind of product

Export means

• buying goods from another country
• selling goods to another country
• only making one kind of product

Why does the United States need to import products?

• The US needs to make money my importing products

• Some products are easier and cheaper to make in other countries

• The US makes everything we need on our own

Which is the primary reason why people and nations trade?

• they have no other choice

• they want to be independent

• they benefit from it

• All of the above

Who does outsourcing hurt economically?

• American workers/home country

• American company owners/CEOs

• Workers in other countries

• Video Gamers

To focus on producing one thing to improve productivity is known as:

• Specialization
• International trade
• Absolute Advantage
• Supply and Demand