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Global Economics (2020)

Total questions: 45

Worksheet time: 25mins

Name
Class
Date
1.

A tax put on goods imported from other countries.

a)

tariff

b)

subsidy

c)

quota

d)

embargo

2.
What happens when the supply decreases but the demand increases for a product?
a)
The price falls
b)
The price stays the same
c)
The price goes up
d)
The price drops
3.

A limit on the amount of a good that is imported

a)

poverty

b)

quota

c)

tariff

d)

economy

4.

What three countries are part of NAFTA (USMCA)?

a)

US, Mexico, and Canada

b)

US, Greenland, and El Salvador

c)

Mexico, Canada, and Cuba

d)

US, Bolivia, Paraguay

5.

When one country refuses to trade with another country.

a)

tariff

b)

quota

c)

embargo

d)

market

6.

What are protectionist policies?

a)

policies that restrict international trade.

b)

trade without government interference

c)

rules that govern markets where goods are sold

d)

policies that control a nation's currency

7.

Government payments to assist an industry so that the price of a good or service can remain low or competitive

a)

subsidies

b)

tariffs

c)

outsourcing

d)

embargoes

8.

In which economic sector would you find an automobile assembly line worker?

a)

Primary

b)

Secondary

c)

Tertiary

d)

Quaternary

9.

What is an embargo?

a)

banning trade with a particular nation or on a particular good

b)

a tax on imports

c)

setting a maximum amount of goods bought from a nation

d)

The government giving money to help producers export their goods

10.

The value of ALL goods and services of a country

a)

gross domestic product

b)

gross national income

c)

human capital

d)

standard of living

11.

What is economic globalization?

a)

US policies toward other nations

b)

another name for multinational corporations

c)

the increasing interdependence of the world's economies

d)

another name for US trade policy

12.

A high demand for bananas + low supply of bananas =

a)

expensive bananas

b)

cheap bananas

c)

high demand for apples

d)

low tariffs on bananas

13.
If the supply of a good is higher than the demand, what happens to the price?
a)
It stays the same
b)
Price goes down
c)
Price goes up
d)
It's FREE!!
14.

Which of the following is NOT an example of infrastructure

a)

the electric power grid and water treatment plants

b)

roads and bridges

c)

churches and grocery stores

d)

rail systems and ports

15.

One of the strategies used by countries under the self-sufficiency approach was

a)

the government would buy up excess goods

b)

signing free trade agreements

c)

increasing trade

d)

requiring permits for all business activities

16.

Which of the following are protectionist policies? (CHECK ALL THAT APPLY)

a)

tariff

b)

subsidy

c)

quota

d)

administrative barrier

e)

structural adjustment

17.

Goods brought into a country for sale

a)

embargo

b)

export

c)

domestic goods

d)

import

18.

Products made in one country and shipped out to another country for sale

a)

imports

b)

exports

c)

foreign goods

d)

outsourced goods

19.

The systems and services that a country or organization needs to function effectively

a)

domestic goods

b)

subsidies

c)

trade barriers

d)

infrastructure

20.

The self-sufficiency model of development had many problems including: (CHECK ALL THAT APPLY)

a)

it led to high rates of unemployment

b)

it encouraged inefficient industries

c)

it promoted a lack of competitiveness within industries

d)

it created black markets for some goods

21.

A low demand for bananas + high supply of bananas =

a)

high tariffs

b)

expensive bananas

c)

cheap apples

d)

cheap bananas

22.

What is the biggest challenge to development for most LDCs?

a)

high tariffs on imported goods

b)

high levels of debt

c)

low worker productivity

d)

low literacy rates

23.

An area, usually in an LDC, where corporations can produce or assemble goods before exporting them for final sale is called

a)

an export processing zone

b)

a protectionist zone

c)

a fair trade zone

d)

an international trade zone

24.

When a country can produce an item cheaper and more efficiently than another country, this is called

a)

supra-nationalism

b)

economics

c)

globalization

d)

comparative advantage

25.

Which of the following are fair trade certification requirements? (CHECK ALL THAT APPLY)

a)

safe working conditions

b)

workers have the right to organize a union

c)

worker housing needs to be provided by employer

d)

workers are paid fair wages

26.

Structural adjustment programs often require which of the following? (CHECK ALL THAT APPLY)

a)

raising taxes

b)

reducing government spending

c)

selling off public resources

d)

closing EPZs within the country

27.

Which of the following is a common criticism made of structural adjustment programs in developing countries?

a)

They make it impossible to get loans from banks and other countries

b)

They cut government funding for programs like medical care and education

c)

They lead to corruption by local governments

d)

They slow economic growth

e)

They cause hyperinflation

28.

Export-processing zones are most often located in

a)

regions that are not accessible by mass transportation like buses and trains

b)

MDCs

c)

countries with low rates of unemployment

d)

LDCs

e)

countries with strict government regulations to protect worker safety

29.

The purpose of maquiladoras is to manufacture goods at low cost for

a)

the South American market

b)

the US market

c)

the Mexican market

d)

the Latin American market

e)

the European market

30.

Which of the following statements about NAFTA (USMCA) are true? (CHECK ALL THAT APPLY)

a)

It led to an increase in wages for American workers

b)

It led to increased trade between member nations

c)

It led to the loss of some manufacturing jobs in the US

d)

it led to the creation of maquiladoras in Mexico

31.

Trade blocs increase trade by

a)

creating trade deficits

b)

removing or reducing restrictions like tariffs and quotas

c)

ensuring fair trade practices

d)

decreasing the number of exports

e)

giving loans to LDCs

32.

What name is given to the transfer of production and basic service-level jobs to other countries?

a)

industrialization

b)

free trade

c)

fair trade

d)

outsourcing

e)

globalization

33.

The benefits of EPZs to developing countries:

(CHECK ALL THAT APPLY)

a)

they create jobs

b)

they grow the LDC's economy

c)

they protect the local environment

d)

they protect worker safety

34.

Most maquiladoras are located in northern Mexico to take advantage of

a)

abundant natural resources and low labor costs

b)

abundant natural resources and low shipping costs

c)

tax money from the government of Mexico and low labor costs

d)

low transportation costs and low taxes

e)

low labor costs and low shipping costs

35.

People in the least developed countries of the world have jobs that fall mainly into which economic sector?

a)

primary

b)

secondary

c)

tertiary

d)

quaternary

e)

quinternary

36.

How are EPZs beneficial to the countries in which they are located?

a)

they create jobs and help grow the economy

b)

they give tax cuts to wealthy citizens

c)

they are designed to protect the environment in LDCs

d)

they protect businesses from foreign competition

e)

they allow countries to be self-sufficient

37.

Increasing interdependence of nations and peoples across the globe.

a)

Infrastructure

b)

Globalization

c)

Interdependence

d)

Specialization

38.

Which of the following are criticisms of the international trade approach to development? (CHECK ALL THAT APPLY)

a)

natural resources aren't distributed equally so some countries are at a disadvantage

b)

to lower costs, some industries use child and/or forced labor

c)

the overall economic growth from trade is very low

d)

to lower costs, some industries have damaged the environment

e)

it gives too much power to MDCs and multinational corporations

39.
A large company that has operations in more than one country.
a)
Domestic Corporation
b)
Multinational Corporation
c)
Foreign Corporation
d)
State Corporation
40.

The benefits of EPZs to foreign businesses and corporations: (CHECK ALL THAT APPLY)

a)

tax breaks & incentives

b)

increase profits

c)

cheap labor

d)

exempt from some government regulations

e)

free shipping

41.

What are the main benefits of outsourcing to businesses? (CHECK ALL THAT APPLY)

a)

higher wages for US employees

b)

lower labor costs

c)

reducing amount of money spent by businesses on factories and equipment

d)

increased profits for companies

e)

there can be fewer government regulations on employee and environmental issues

42.

What data is used to calculate HDI? (CHECK ALL THAT APPLY)

a)

life expectancy

b)

literacy rate

c)

gross national income per capita

d)

average years of schooling

e)

expected years of schooling

43.

When a group of neighboring countries adopt policies to promote trade with each other, this is called

a)

a protectionist policy

b)

a subsidy

c)

an embargo

d)

a trading bloc

e)

comparative advantage

44.

The international organization that provides loans to countries in financial distress

a)

The International Monetary Fund

b)

The Global Development Bank

c)

The UN Financial Crisis Fund

d)

The Federal Reserve Bank

45.

Which of the following is the best example of outsourcing?

a)

An American retail store imports goods from China.

b)

An American company closes its factory in Illinois and contracts with a company in Bangladesh to do the same job for 1/4 the cost

c)

A European worker moves to the USA and gets a high paying job at a tech company.

d)

An American company decides to change it's steel contracts from Japanese companies to Chinese companies