Global Economy Quiz

What is the global economy?

• Trade between cities in one country

• Trade within a single state

• Worldwide markets where nations buy and sell goods and services

• Only online shopping between countries

Which of the following best describes the global economy?

• Only wealthy countries trading goods

• A system where all nations participate in buying and selling

• Trade that happens only in local markets

• Government-controlled businesses only

What does it mean when Virginia and the United States “specialize” in production?

• They produce everything they need

• They focus on producing certain goods and services

• They stop trading with other countries

• They only produce agricultural goods

Why do regions specialize in certain goods and services?

• To avoid working with other countries

• To reduce the number of products available

• To promote efficiency and economic growth

• To increase prices of goods

Which is an example of specialization?

• A country producing every type of product

• A state focusing mainly on technology services

• A country refusing to trade

• A business closing all factories

How does specialization benefit the economy?

• It slows down production

• It makes goods more expensive

• It increases efficiency and growth

• It stops global trade

Which of the following is an example of technology that supports the global economy?

• Horses

• The Internet

• Handwritten letters only

• Stone tools

What does the Internet help increase in the global economy?

• Isolation between countries

• The flow of information, capital, goods, and services

• The cost of all goods

• The number of borders

What is meant by the “flow” of goods and services?

• Goods staying in one place

• Movement of goods and services between countries

• Goods being destroyed

• Services being stopped

How do technological innovations impact the global economy?

• They limit trade

• They slow communication

• They help connect countries and improve trade

• They eliminate the need for goods