Global Economy Review

Which of the following characteristics does NOT describe a developing nation?

• Improving educational systems

• Expanding industries

• Strong infrastructure

• Increasing national income

The three main characteristics of this economic systems are private property, profit motive and a free, competitive marketplace.

• Command

• Market

• Mixed

• None of these

Which of the following does NOT reflect a country's level of economic development?

• Literacy level

• Technology

• Agricultural dependency

• Economic system

True or False: Trade surplus (deficit) is always a viable indicator of economic health.

• True

• False

Inadequate housing, poor health care, and political instability are all characteristics of which level of economic development?

• Industrialized

• Developing

• Less-developed

• None of these

Which of the following is NOT a factor of production?

• Natural resources

• Economic resources

• Human resources

• Capital resources

True or False: When a country has an unfavorable balance of trade it must use future income to pay for current and past spending.

• True

• False

Because they have an abundance of oil, Saudi Arabia has a _______ in oil production.

• Absolute advantage

• Comparative advantage

• Natural resource

• Supply

Going to college and giving up the opportunity to earn money at a job right now is an example of which economic principle?

• Scarcity

• Supply & Demand

• Opportunity Cost

• Gross Domestic Product (GDP)

A country deciding whether to produce its own food or import agricultural products is an example of which economic principle?

• Scarcity

• Supply & Demand

• Opportunity Cost

• Gross National Product (GNP)