Unit 7 Exam Review

Which of the following best explains a benefit of membership in the European Union?

• Member states are eligible to receive loans from the European Union, which protects states against recession.

• Member states receive equal numbers of international migrants, which ensures even distribution of resources.

• Member states have more secure borders, which guards against conflict.

• Member states form a single market, which creates a powerful economic bloc.

Economic complementarities between two places tend to

• reflect only differences in resource base

• occur when each place specializes in commodities demanded by the other

• occur when the places specialize in the same commodities

• reflect the minimization of distance

Which of the following has fostered the most significant economic growth by eliminating import tariffs between member states?

• European Union (EU)

• Organization of Petroleum Exporting Countries (OPEC)

• North Atlantic Treaty Organization (NATO)

• United Nations (UN)

The state of Florida earns greater revenues from the export of oranges than does the  state of Georgia. This can be attributed to  which of the following?

• Florida has a comparative advantage as a producer of oranges.

• Georgia has a comparative advantage as a producer of oranges.

• Florida’s economy is primarily based on agricultural production.

• Georgia’s economy is focused on tourism and manufacturing.

Free-trade zones such as the countries of the North American Free Trade Agreement (NAFTA) are established to increase the ease and volume of international trade by

• increasing diplomatic relations between member states

• eliminating tariffs on goods that cross borders between member states

• opening borders to migrant guest workers from member states

• establishing a common monetary unit among member states

Which of the following best explains a trading relationship between two countries based on comparative advantage?

• One country exports raw materials and the other country exports manufactured goods, resulting in a global economic balance.

• One country implements tariffs on goods that are imported from another country because the importing country will benefit from profits on the sale of the goods.

• Each country specializes in the type of good for which it has the lowest opportunity cost, resulting in a higher global output of both types of goods.

• Two countries trade in luxury items, but the volume of trade is limited by the highest cost of long-distance trade.

Compare the two images. What do the technologies shown demonstrate about the Industrial Revolution?

• The dependence on large quantities of steel has limited industrial growth to areas with high concentration of coal and iron.

• The increased transportation technology has enabled the diffusion and expansion of industrial activities.

• Industrial centers must be built along rivers or waterways to facilitate the transportation of raw materials and finished goods.

• The initial take-off stages of the Industrial Revolution focused solely on heavy, material-oriented industries.

Environmental laws, labor availability, and access to markets are major factors affecting which of the following?

• Political affiliation

• Property tax rates

• Manufacturing locations

• Gross domestic product

Which of the following best describes Alfred Weber’s analysis of location decisions?

• It seeks to evaluate the impact of a single factor of production on location.

• It depends on the availability of a single node, link, and input of production.

• It is applicable only in industrial economies with predictable spatial patterns.

• It seeks to minimize costs among multiple factors of production on manufactoring location.

The port of Los Angeles is the busiest port in the United States and a major break-of-bulk point. Which of the following statements correctly explains why Los Angeles is a break-of-bulk point?

• The port can accommodate large container ships that can be unloaded quickly so that containers can be transferred onto carriers that use California’s highway and rail systems.

• The massive warehouses located at the port allow goods from container ships to be stored easily for long periods of time.

• Goods can be transferred to other container ships going to the port of San Francisco.

• Los Angeles is on the Pacific Ocean allowing for more trade with countries in Asia.