05.00 Thinking Globally Pre-Assessment

How are traditional economies like free-market economies?

Both have no government regulation.

Which economic goal involves maximizing the use of available resources?

Efficiency

France and Greece produce olive oil and wine. Look at the table. Which of the following is true?

France has a comparative advantage over Greece in wine production

In a command economy, who determines what to produce?

Government

The United States can manufacture books at a much more rapid pace than manufacturers in Indonesia. Which of the following is a reason?

Indonesia, as a developing country, has a less advanced manufacturing infrastructure.

Which of the following best completes the table?

Inexpensive sugar grown in the Caribbean

Which of these results from inflation in the United States?

Investors buy products in other countries

Sofia, who lives in Chicago, knits and sells alpaca-wool scarves. She spends 15 hours knitting one scarf. Maria, who also knits, lives in Lima, Peru. She spends 12 hours knitting one scarf. Which of these statements is true?

Maria has an absolute advantage over Sofia

Mark thinks the government should determine how, when, and for whom goods should be produced. His ideas are based on which of these economists?

Marx

Two developed countries have market economies with similar gross domestic products. However, one is ranked lower than the other on the United Nations Human Development Index. What might contribute to this low ranking?

Standard of living

Look at the map showing the European Union (EU) and its free-trade agreement (FTA) countries. Which of the following is true of most of the negotiating countries?

They have access to the ocean.

A popular toy, which is made in China and sold in the United States by a well-known toy company, is found to have a toxic chemical in the paint. Why might it be important to establish a trade barrier in this case?

To restore consumer confidence

Keynes would most likely oppose a plan for

government control of all the manufacturing companies

Economists believe that having some inflation is a

healthy sign of economic growth

Workers and businesses together benefit from inflation when

increased profits lead to increased wages