IB Policy Quiz 1 A222

Which of the following facts is false about Greece debt crises?

• The Greek debt crisis is due to the government's fiscal policies that included too much spending.

• Mismanagement of monetary policy is the main reason for the crisis.

• While the economy boomed from 2001-2008, higher spending and mounting debt loads accompanied the growth.

• Greece's financial situation was sound when it entered the EU in the early 1980s, but deteriorated substantially over the next thirty years.

Currency fluctuations can benefited the investors by investing in overseas equities. A weaker dollar can boost their returns in U.S. dollar terms.

• True

• False

“Imports of intermediate and capital goods will be more expensive, raising production costs while slowing down capital investment and industrial upgrading,” This statement refers to:

• Weakening effect of Malaysian Ringgit (MYR)

• Strengthening effect of Malaysian Ringgit (MYR)

Primacy of the rights and role of the community is the core of individualism philosophy.

• True

• False

Education in the Soviet Union was highly centralized, with the state owning and operating nearly every school. The curriculum was rigid, and the system aimed to indoctrinate students in the communist system.

• True

• False

Dealing with unfriendly countries is one of the economic rationales for government intervention in trade.

• True

• False

The U.S. is banning the sale of communications equipment made by Chinese companies Huawei and ZTE and restricting the use of some China-made video surveillance systems, citing an "unacceptable risk" to national security. Which of the following best describe this action:

• Maintaining essential industries

• Preserving national identity

• Dealing with unfriendly countries

• Extending spheres of influence

Many of India’s bound tariff rates on agricultural products are among the highest in the world, ranging from 100 percent to .......... percent. 

• 300

• 150

• 200

• 400

India further raised duties on several information and communications technology products, including cell phones, from 15 percent to 20 percent. Prior to the tariff increases, these products were imported duty- free. Duties on automotive components such as engine and transmission parts, brakes, suspensions, gear boxes, and airbags increased to 15 percent from 7.5 percent in the case of some products and from 10 percent in the case of others. This statement shows that:

• Reduces imports and promotes exports

• Reduces exports and promotes imports

Countries seek protection to promote industrialization because of the following reasons except:

• Brings in investment funds

• Reduces imports and promotes exports

• Diversifies the economy

• Moving towards self-sufficient economy