Economic Growth and Specialization Quiz

What is a common effect of specialization in the workplace?

• decreased efficiency

• countries below more dependent on each other

• reduced collaboration

• less interdependence

Mia is starting a new bakery in her neighborhood. Why is entrepreneurship often difficult?

• There is a risk that the new business may fail.

• There are laws that restrict most new businesses.

• Motivation for profit may not be the best incentive.

• Healthy competition encourages higher quality products.

Elijah and Nicole are discussing international trade. If Country X wanted to create an economic punishment against Country B, which of these would they be MOST likely to create?

• embargo

• quota

• subsidy

• tax

What impact would investing in adult training programs in technology and engineering have on Mexico's economic development?

• It would likely increase economic development and GDP.

• It would likely hinder economic development and GDP.

• There would be no impact on economic development or GDP.

• Adults would migrate to Canada due to better opportunities.

Given the United State's high literacy rate, what might be a likely outcome?

• USA would have a low quality of education.

• USA would have a strong economy.

William and Ava are studying the impact of increased education and training within a nation. They want to know what this will most likely result in.

• a decrease in entrepreneurship.

• a decrease in Gross Domestic Product (GDP).

• an increase in Gross Domestic Product (GDP).

• an increase in the presence of natural resources.

Sophia is considering starting a new business. The MOST LIKELY incentive for her to do so is

• to make a profit (more money).

• to discover a new patent.

• to risk financial failure.

• to create a new social benefit.

As with any small island country, Cuba has fewer natural resources than countries such as Brazil. In other words countries with less natural resources have to depend more on countries with more natural resources. This affects their economy in that Cuba______________.

• relies heavily on tourism and imports

• has a large manufacturing sector

• is a major exporter of oil

• has abundant mineral resources

A country that has a trade deficit (they don't make many products in their own country)

• exports only manufactured products.

• exports more products than it imports

• must import (receive from other countries) more products than it exports.

• has imposed trade barriers against the United States.

What is the term for the value of one currency compared to another?

• interest rate

• monetary policy

• the exchange rate

• fiscal policy

• inflation rate