Econ- Unit 9

One way to measure economic growth is by using GDP, which stands for ___________

Gross Domestic Product

How does international trade best benefit specialization? A country can make and sell goods affordably and buy goods it cannot make. A country can make what it chooses and can sell its goods to other countries. A country can decide to buy everything it needs from other countries. A country can efficiently make goods that were once difficult to make.

A country can make and sell goods affordably and buy goods it cannot make.

Which describes the difference between a trade surplus and a trade deficit? A trade surplus is when a country exports more than it imports, while a trade deficit happens when imports exceed exports. A trade surplus is when a country imports more than it exports, while a trade deficit happens when exports exceed imports. A trade surplus is when a country produces more than it consumes, while a trade deficit happens when consumption exceeds production. A trade deficit is when a country loses money on products it makes, while a trade surplus happens when production leads to profits.

A trade surplus is when a country exports more than it imports, while a trade deficit happens when imports exceed exports.

Which best explains how globalization offers an advantage to businesses? Businesses can take advantage of favorable laws to make products cheaply. Businesses can take advantage of favorable taxes to make products cheaply. Businesses can take advantage of new forms of technology to make products cheaply. Businesses can take advantage of new forms of democracy to make products cheaply.

Businesses can take advantage of new forms of technology to make products cheaply.

How has globalization made countries more interdependent? Check all that apply. Countries rely on each other for vital resources. Countries rely on each other for new industries. Countries rely on each other for chances to import. Countries rely on each other for an employment base. Countries rely on each other for cheaper products. Countries rely on each other for chances to export.

Countries rely on each other for vital resources. Countries rely on each other for chances to import. Countries rely on each other for chances to export.

Which of these statements most accurately describes the use of currencies in different parts of the world? Most countries use the dollar as their currency. Countries in Asia use the euro as their currency. Different countries use different currencies. All countries are required to use the same currency.

Different countries use different currencies.

Which of these statements most accurately describes currencies in North America? All countries in North America use the US dollar. All countries in North America use the euro. North American countries have done away with separate currencies. Each country in North America uses its own currency.

Each country in North America uses its own currency.

What role does competition play in international trade? It results in higher prices. It discourages imports. It drives down prices for consumers. It does away with the need for investment

It drives down prices for consumers.

Which statements accurately describe a country's currency? Select all that apply. The currency is easily divisible. The currency can be used in any other country. The currency has a value that can change. The currency has denominations. The currency has a value that must stay the same.

The currency is easily divisible. The currency has a value that can change. The currency has denominations.

Which statement best describes how globalization is affecting the world? Globalization is growing less important as time passes. The world is becoming more globalized and connected. Globalization has resulted in fewer connections among countries. Countries are growing less likely to trade with one another.

The world is becoming more globalized and connected.

Which is the best example of a country that is dependent on other countries? a country that has little fertile soil a country that has no imports a country with grain surpluses a country with a diverse economy

a country that has little fertile soil

Which is an example of a country that is overly dependent on another country for critical goods and services? a country that imports all its oil a country that imports all of its luxury goods a country that licenses some television shows a country that has some international businesses

a country that imports all its oil

A country that can produce a good more efficiently than another country has with the same number of resources has the an import advantage. an export advantage. a comparative advantage. an absolute advantage

an absolute advantage

Why does the US import oil? because it does not produce any oil because it has exported too little oil because it has exported too much oil because it does not produce enough oil

because it does not produce enough oil

If the value of the US dollar declines in relation to other currencies, goods imported into the United States will not be allowed to enter the country. become less expensive. remain the same in price. become more expensive.

become more expensive.

Which form of transportation has led to more efficient business in a global market? helicopters high-speed trains tractor trailers cargo ships

cargo ships

Which technologies have made global communication instant and more effective? Check all that apply. cell phones wireless devices smart phones automobiles newspapers

cell phones wireless devices smart phones

Globalization is the process of limiting exchange of goods and services. connecting the world over time. requiring or relying on something. focusing on certain goods and services.

connecting the world over time.

A currency shared by several countries in Europe is the _____

euro

A company in Maine sends lobsters to France. What is this an example of? importing international trade exporting globalization

exporting

In regard to trade, the United States imports goods and services only. exports goods and services only. does not import or export goods and services. imports and exports goods and services

imports and exports goods and services.

Which process helps countries import things they cannot make while allowing them to specialize in exports? absolute advantage isolation competition international trade

international trade

A factory owner might decide to manufacture shirts in Pakistan instead of the United States because it is less expensive to make shirts there. it is worth paying more for foreign labor. workers in Pakistan are more skilled. workers in Pakistan work fewer hours.

it is less expensive to make shirts there.

Airplanes have changed the way the world does business by making long trips less expensive. making long trips in faster time. opening up new trade markets. increasing hiring opportunities.

making long trips in faster time.

Technologies that allow for instant worldwide communication include satellite and computer systems. mobile phones and Internet access. airplanes and container shipping. outsourcing and new trade markets.

mobile phones and Internet access

Global trade provides consumers with more options and lower prices. fewer options and lower prices. more options and higher prices. fewer options and higher prices.

more options and lower prices.

The Middle East is best associated with which internationally traded product? electronics bananas manufactured goods oil

oil

There would be no separation between one country's economy and another's if the entire world shared the same currency. chose paper currency over coins. eliminated denominations for currency. agreed to use only two types of currency.

shared the same currency.

Recent improvements in _________ have increased the pace of globalization

technology

Why might a country choose to devalue its currency? to please its trading partners to encourage exports to encourage imports to reduce taxes

to encourage exports

A reason that countries trade with each other is to help their neighbors. to get products they cannot produce. to sell goods they do not need. to share excess resources.

to get products they cannot produce.

Which best explains why a US corporation would open a factory in China? to take advantage of affordable land prices to take advantage of abundant resources to take advantage of lower labor costs to take advantage of favorable tax laws

to take advantage of lower labor costs

An exchange rate table makes it easy to compare the different currency denominations used by a single country. cost to produce the currency used by a single country. value of the currencies for two or more countries. unemployment rates for two or more countries.

value of the currencies for two or more countries.