Practice Questions

(6.1A) North Korea struggles to further develop its economy due to historic restrictions on –

• Trade
• Colonization
• Immigration
• Conflict

Which factor of production did Jin use to grow his business? (6.6A)

• Natural Resources
• Capital
• Labor
• Entrepreneurs

Given the limited access to natural resources and the controlled supply of capital, which of the following problems is North Korea most likely to face? (6.6B)

• High levels of technological innovation and entrepreneurship
• A shortage of goods and services due to limited production
• An increase in international trade and investment
• A decrease in unemployment due to increased labor demand

How does North Korea's command economy impact workers? (6.7A)

• Workers choose their jobs freely and earn wages based on their performance.
• Workers do not choose their jobs freely and must follow government decisions.
• Workers are mostly self-employed and create goods to sell in the open market.
• Workers can freely negotiate wages and working conditions with employers.

In North Korea the government plans the factors of production.

• Free Market
• Command Economy

In Japan, entrepreneurs can start new businesses.

• Free Market
• Command

In South Korea, technology factories produce goods to meet demand for the products

• Free Market
• Command

How does the government system in China differ from those in Germany and India? (6.10B)

• China has a multi-party system, while Germany and India have one-party systems.
• Germany and India have free, competitive elections, whereas China’s leadership is determined by the Communist Party.
• China elects a new president every four years, while Germany and India have monarchs.
• India and Germany are communist, while China follows a capitalist system.

What is the impact of Japan’s limited natural resources on its international trade relationships? (6.4B, 6.6C)

• Japan’s scarcity of resources leads to minimal trade, as it does not need to import much.
• Japan’s reliance on imports for raw materials makes it highly dependent on other countries for its
• Japan’s natural resources are abundant enough that it does not need to trade with other nations
• Japan’s limited resources prevent it from developing industries that rely on trade with other countries

Which of the following would be considered part of the service industry in East Asia? (6.8A)

• A restaurant in Tokyo providing meals to customers
• A company in China that grows tea leaves
• A factory in South Korea producing shoes
• A farm in Vietnam raising livestock