ECONOMICS UNIT 6 Q&A'S

What factor accelerated the move toward capitalism in Mexico?

NAFTA

The permanent intergovernmental organization whose objective is to co-ordinate and unify petroleum policies among member countries is

OPEC

In India, Suhas Gopinath founded _____ when he was just 14. Today his company provides software to hundreds of companies throughout the world.

globals, inc

_______ is a free enterprise economy with some government involvement.

modified free enterprise economy

The population of most developing countries grows at a rate _________ the populations of industrialized countries.

much faster than

Which country is not an "Asian Tiger"?

north korea

All of the following are renewable energy sources EXCEPT

nuclear energy

_____ provides 7.9% of the energy needs of the United States.

nuclear energy

In this passage: "In 2001, the Seattle Mariners paid $13.125 million to obtain Ichiro from the Orix Blue Wave. Ichiro is the first position player to have moved to the major league from Japan." this competitive marketplace is the

open market

was influential in securing a number of political freedoms in

poland

The federal government attempts to control pollution from large industries by issuing _____, which are a source of revenue for the government.

pollution permits

Which statement best summarizes Malthus's argument about population growth?

population increases geometrically while resources increase at a constant rate

As long as the _____ is allowed to operate, we will never suddenly run out of an endangered resource.

price system

Economic development proceeds in stages. List the stages in their order of development.

primative equilibrium breaking with primitive equilibrium takeoff semidevelopment high development

A country in _________ often has no monetary system and may not be economically motivated.

primitive equilibrium

To generate internal funds or savings, an economy must __________ more than it _________.

produce, consumes

All of the following are examples of development with external funds EXCEPT

producing more than is consumed

All of the following are examples of development with external funds, EXCEPT

producing more than is consumed

Privatization is

the conversion of state-owned factories and property to private ownership

What is the world's single largest market in terms of population and output?

the european union

When command economies make the transition to capitalism, they face all of the following challenges except

the gosplan

Which of the following statements about developing countries is FALSE?

the international community helps developing countries to prevent international trade competition

How is population an obstacle to economic development in developing countries?

the populations of many developing nations are too large for available resources to support

Over 200 years ago, _____ predicted many of the population problems some developing nations face today—high birthrates, famine, and the threat of a subsistence standard of living

thomas malthus

Since 1960 Earth's population has doubled from __________ people.

three billion to six billion

Proximity to a large economic center can provide _________.

-a market for the sale of goods -direct investment

Why is clean water such an important economic element in the developing world?

-adults are unable to earn an income during the hours when they haul water -unclean water keeps people sick and malnourished, so they cannot work and earn income

For many in Uganda, hauling water takes up many hours of every day. How does this affect economics?

-children are often unable to attend school, which prevents them from getting better-paying jobs later -adults are able to earn an income during the hours when they haul water

Why is Africa is less developed than the rest of the world?

-due to its size, many places are a long way from the coast

Two international agencies that help with development are

-world bank -international monetary fund

When did Malthus publish his essay on the Principles of Population?

1798

did Malthus publish his Essay on the Principles of Population?

1798

The European Union (EU) is made up of _____ sovereign countries.

27

The amount of water floating the earth's atmosphere is ______ times greater than all the water flowing in all of the rivers.

6

OPEC's business organization is called

a cartel

The Organization of Petroleum Exporting Countries (OPEC) is an example of

a cartel

All of the following have contributed to Japan's rapid economic growth in the 1970's and 1980's EXCEPT

a high cost of living

All of the following have contributed to Japan's rapid economic growth in the 1970s and 1980s EXCEPT

a high cost of living

Keiretsu is/are

a tightly knit group of japanese firms governed by an external board of directors

The International Monetary Fund (IMF)

advises all nations on monetary and fiscal policies

The combustion of solid, liquid, or gaseous products from plant life provide _____ energy.

biofuel

A country can get external financial assistance by

borrowing from international agencies, accepting assistance industrialized countries, and attracting foreign private investment

In Poland, Hungary, and the Czech Republic, the transition to privatization was facilitated

by using vouchers

External funds for financing economic development in developing countries are available in all of the following areas, EXCEPT

foreign governments

A fundamental knowledge of economics helps people cope with the future, especially now that _____ has emerged as the dominant type of economic organization in the world today.

capitalism

Which economic system is best able to adapt to changing world conditions?

capitalism

Which country is not an Asian Tigers?

china

Which statement best describes the current role of capitalism in China?

china is acting in a capitalist manner by privatizing industries and introducing market reforms

Which language is presented as a rival for English as the language of business in the near future?

chinese

The World Bank also recommends that the developing countries practice all of the following, EXCEPT

close their economies to international trade

All of the following are challenges to the former communist countries as they transition to capitalism, EXCEPT

closed access to information on the activities of state federal bodies for citizens and organizations, including intrnet access

Property or other security used to guarantee repayment of a loan is

collateral

All of the following are problems with capitalism EXCEPT

communist ruling classes must have their political power solidified

All of the following are problems with capitalism, EXCEPT

communist ruling classes must have their political power solidified

All of the following are problems with the transition from communism to capitalism EXCEPT

communist ruling classes must have their political power solidified

All of the following countries are currently involved in the transition to capitalism EXCEPT

cuba

For a developing country to improve economically, it must have

foreign investment

The National Council on Economic Education recommends that the last step in economic decision-making should be to

decide which alternative best leads to the attainment of the most goals or the most important goal

Countries whose average per capita GNP is a fraction of that in more industrialized countries are called ____________ countries.

developing

All of the following statements about cost-benefit analysis are true EXCEPT

economists use cost-benefit analysis when they decide what to write in textbooks

In general, the price system

helps promote the conversation of scarce resources

In what stage of development is the United States economy?

high development

Prior to 1997, the most successful Asian Tiger was

hong kong

Which of the following economies developed by saving in a market economy?

hong kong

The developed countries concern for the underdeveloped countries is

humanitarian

All of the following are actions industrialized nations could take to help developing nations EXCEPT

improving the climate for free enterprise

All of the following are barriers to economic development in developing nations EXCEPT

inadequate capital flight

In general, interest in renewable sources of energy has

increased in recent years

All of the following are actions developing nations could take to help developing countries EXCEPT

increasing financial support

The largest consumer of energy in the United States is

industrial

The highways, mass transit, communications, power, water, sewerage and other public goods needed to support a population is

infrastructure

All of the following are actions industrialized nations could take to help developing countries EXCEPT

investing in the education and welfare of people

The World Bank

is an international corporation that makes loans and provides financial assistance to developing countries

The gap in per capita income between industrialized and developing countries

is getting wider

The study of economics is useful because

it helps people become better decision makers

Soft loans are

loans that may never be paid back

The World Bank Group recommends that industrialized countries develop __________ policies that reduce budget deficits, stabilize inflation, lower interest rates, and stabilize currency fluctuations.

macroeconomic

All of the following are concerns about the exponential growth in population, EXCEPT __________.

manpower for work

During the 1990's, Sweden

retreated from socialism

During the 1990s, Sweden

retreated from socialism

Which of the following is a World Bank recommendation that applies to both industrialized and developing countries?

revise macroeconomic policies

Many countries have discovered that it is necessary to modify pure capitalism to

satisfy economic goals

Pilots seed clouds using

silver iodide

All of these issues add to the problems of developing countries, EXCEPT

small external debts

All of the following are nonrenewable energy sources EXCEPT

solar power

Some renewable energy resources, such as solar energy and hydropower, have several important advantages over nonrenewable resources. Which is an advantage of renewable energy resources?

some renewable energy sources will never run out

The Asian Tiger with the smallest per capita GNP is

south korea

_____ is a striking example of a developing nation having achieved success: it has developed from a poor war-torn economy to the eleventh largest economy in the world.

south korea

During the 1990's Japan experienced

stagnation and recession

During the 1990s, Japan experienced

stagnation and recession

Nonrenewable resources, such as coal and petroleum, indirectly harness the energy of the

sun

Which country was once regarded as the "socialist state that works," but now has restructured in an attempt to move away from socialism?

sweden

A country overcomes the barriers of primitive equilibrium and begins rapid economic growth. In what stage of economic development is the country?

takeoff

Expropriation is

taking over in foreign property without payment

Government efforts to reduce pollution include all of the following EXCEPT

taking over polluting industries

Transparency is

term for making business deals visible to everyone

The Ogallala Aquifer, underground water supply, supplies water from

texas to nebraska

International agency that makes loans to developing countries; formally the International Bank for Reconstruction and Development

world bank

The divisions of the _________ provide advice, interest-free loans to developing countries, and guarantees to foreign investors.

world bank group