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