WorksheetsECO561 Quiz 1: Individual Assignment 1 20244
Total questions: 20
Worksheet time: 20mins
The development of a worldwide economy where resources flow fairly freely across borders.
Globalization
Economy
GDP
Economic Independence
When the U.S. has an economic recession, it has a ripple down effect to China who exports goods to the U.S. and causes an economic recession in China as Americans are buying fewer goods. This relationship between China and the U.S. is called -
economic interdependence
multinational cooperation
isolationism
outsourcing
Which of the following was instrumental in creating the global economy that exists today?
The use of high taxes for imports and exports
Improvements in technology such as the Internet
The creation of one form of currency (money) used to trade
The success of the Communist governments in guiding trade
What is globalization?
The increased flow of trade, people, technology, and culture among countries.
The decreased flow of trade, people, technology, and culture among countries.
The creation of one global empire and government under a single super power.
The creation of a global cellular network to use phones internationally.
Globalization has also increased due to advances in transportation. Pick the option below that is an example of an advance in transportation.
Reduction of trade barriers and tariffs
Introduction of container ships
Broadband and 5G networks
Creation of postwar organisations such as the UN
When a countries focuses on producing certain services or goods based in order to gain greater efficiency. Often, location plays a role - countries will capitalize on goods (or services) native to their region.
What are some negatives of globalization?
Workers are exploited in sweatshops
Pollution and deforestation
Low wages for factory workers in Asia and Africa
All of the answers are correct
What are some positives of globalization?
Cheap sneakers and clothes
Cheap electronics
Information is easy to access and it travels quickly (internet and social media)
All of the answers are correct
What are some negatives of globalization?
Workers are exploited in sweatshops
Pollution and deforestation
Low wages for factory workers in Asia and Africa
All of the answers are correct
If Scarlett is better at all types of production, she has the ______ in all forms of production.
Comparative advantage
Specialization
Absolute advantage
developed nation
The ability of a country to produce goods at a lower opportunity cost than another country is called
Comparative advantage
Absolute advantage
The followings are reasons for international trade EXCEPT
Encourage opportunity in local direct investment
Increase productivity
Make the market more competitive
Increased efficiency
What is the opportunity cost of producing a car in the U.S.?
0.5 tools
0.5 cars
0.75 cars
1.3 tools
Which country has the absolute advantage in producing airplanes?
The U.S. can produce 10 iPad or 20 phones. China can produce 20 iPad or 30 phones. Who should produce what?
U.S. - iPad
China - phones
U.S. - phones
China- iPad
both should produce iPad
they should not specialize
