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Worksheets

Economic Institutions and Problems

Total questions: 10

Worksheet time: 6mins

Name
Class
Date
1.

The role of the World Trade Organisation (WTO) is

a)

To reduce poverty

b)

To develop trade in more developed countries

c)

To develop trade restrictions

d)

To liberalise international trade

2.

Which of the following effects is the LEAST LIKELY to occur from high levels of unemployment?

a)

reduction in output levels in the economy

b)

increase in social cost like crime

c)

increase in GDP

d)

increase need for state support for welfare payments

3.

CSME "free movement" of productive resources applies to which of the following

a)

Capital

b)

Services

c)

Goods

d)

Human resources

4.

A key problem facing Caribbean nationals is Population Density. Under population in an area affects a country by

a)

placing a strain on the country's financial resources

b)

reducing the labour supply available

c)

increase social cost in certain areas

d)

causing high interest rates in the country

5.

An economy usually experiences periods of booms and recessions. A period of recession usually results in unemployment. This is specifically

a)

Technological unemployment

b)

Cyclical unemployment

c)

Seasonal Unemployment

d)

Frictional Unemployent

6.

Which statement best describes the problem of Debt Burden experiences by the Caribbean Nationals?

a)

A situation where the government spends more than it receives in revenue

b)

Small islands have to borrow extensively from international institutions to balance their budget

c)

Growth is stiffed due to the low demand for goods and services

d)

a situation of higher interest rates in a country affecting investments

7.

Which of the following statements are the positive effects of Foreign Direct Investment on a host country?

a)

Employment generation

b)

Exploitation of resources

c)

Introduction of technology

d)

Social investments in sports and charities

8.

Which of the following statements BEST outlines the role of the European Union?

a)

To create more job opportunities for citizens to travel

b)

To encourage tourism in member nations

c)

To allow free movement of goods, service, capital and people among member states

d)

t restrict trade with non-member states

9.

A situation where there are two sectors of an economy are at different levels of development and where one is significantly more technologically advanced than the other is called

a)

Foreign Direct Investment

b)

Fiscal policy

c)

Economic Dualism

d)

Development Dualism

10.

NAFTA is considered a trading bloc. The MAIN aim is to

a)

reduce poverty

b)

eliminate trading barriers among member countries

c)

create a cartel

d)

provide sustainable development for member states