MKTG 456 Chapter 2
The Swedish government has significant holdings in key business sectors and has a hybrid economic system that incorporates both _____________________. A. centrally planned socialism and capitalism B. market capitalism and socialistic capitalism C. market socialism and market capitalism D. centrally planned socialism and market socialism E. market capitalism and centrally planned socialism
A
The United States is a major service trader with service exports totaling nearly $750 billion in 2016. This represents approximately what portion of total U.S. exports? A. One-half B. Three-quarters C. One-tenth D. One-quarter E. One-third
A
The balance of payments is a record of all economic transactions between the residents of a country and the rest of the world. It is divided into the current and capital accounts. Current accounts include all the following EXCEPT ______________. A. portfolio investments B. humanitarian aid C. merchandise trade D. services trade E. manufactured goods
A
The balance of payments is divided into what two accounts? A. Current and capital accounts B. Current and service trade accounts C. Capital account and trade surplus D. Capital and service trade accounts E. Current and merchandise trade accounts
A
Today, much attention is focused on opportunities in the regional block termed as BRICS. The five countries are ________________________. A. Brazil, Russia, India, China, and South Africa B. Brazil, Russia, India, Chile, and South Africa C. Brazil, Russia, Indonesia, China, and South Africa D. Brazil, Romania, India, China, and South Africa E. Belgium, Russia, India, China, and South Africa
A
In ________, the state has the broad powers to decide what goods and services are produced and in what quantities. This system is not based on consumer demand. A. market socialism B. centrally planned socialism C. centrally planned capitalism D. market capitalism E. command allocation
B
The so-called Big Mac Index is a "quick and dirty way" of determining __________. A. the cost of carry-out food in different countries B. which of the world's currencies are weak or strong C. the ingredients used to produce the perfect Big Mac hamburger D. the average height of a Big Mac burger E. the price of hamburgers around the world
B
In centrally planned socialism, which type of approach do economic systems' state planners use to make decisions on behalf of government? A. Market-based approach B. Democratic approach C. Top-down approach D. Financial sector approach E. Workers' ballot
C
In 2008, Ford became one of the first car manufacturers to produce a "global car," that is, a car specifically produced for the global distribution and marketed across many different countries. What was the product name of this car model? A. Ford Taurus B. Ford Escort C. Ford Fiesta D. Ford Focus E. Ford Mustang
C
In 2014, the European Central Bank (ECB) embarked on a course of action that resulted in a decline of the euro's value, using a quantitative easing tool. How did the ECB use this tool? A. It increased interest rates. B. It reduced interest rates. C. It began buying tens of billions of euros' worth of government bonds each month, greatly increasing the supply of euros. D. It took over some financial institutions. E. It wrote down bad debt in the market.
C
The International Monetary Fund's Balance of Payments Statistics Yearbook provides ______________ and ______________ activity for all countries in the world. A. investment statistics; summaries of investment B. unemployment statistics; summaries of payment C. trade statistics; summaries of economic D. debt statistics; balance of debt E. job statistics; balance of trade
C
According to the Global Software Piracy Study conducted each year by the Business Software Alliance, annual worldwide losses due to software piracy amount to approximately _______. A. $12.6 billion B. $800 million C. $62.7 billion D. $1.2 billion E. $350 million
C
According to the WTO's 2015 global export rankings, _________ is the top-ranking country and export powerhouse over the United States and __________. A. China, Germany B. Germany, China C. Germany, Japan D. Japan, India E. Netherlands, India
A
A ________ results when the outflow of money to pay for imports exceeds the inflow of money from the sale of exports. A. trade deficit B. balance of payments C. merchandise trade transaction D. trade surplus E. services trade transaction
A
In which economic category does the majority of the world's population fall? A. Lower-middle-income countries B. High-income countries C. Low-income countries D. Upper-middle-income countries E. Lower-upper-income countries
A
In 2015, which of the following countries was the world's leading exporter? A. China B. Japan C. The United States D. Germany E. Brazil
A
Which of the following statements is TRUE concerning manufacturing? A. Manufacturing employment has continued to decline, not increase, even though manufacturing itself is not in decline. B. The manufacturing trends found in the U.S. are not similar to other major industrial economies. C. Very few factory jobs were eliminated between 1995 and 2002 in the large economies. D. In the 40-year period between 1971 and 2011, the percentage of the U.S. workforce employed in manufacturing increased slightly. E. Manufacturing's share of GDP in the U.S. has increased from 1989 to 2009.
A
______________ have(has) replaced trade as the driving force of the world economy. A. Capital movements B. Full employment C. Climate disasters D. Technology applications E. International airlines
A
A reduction in the value of a nation's currency against other currencies is known as _________. A. a call option B. devaluation C. economic exposure D. a put option E. hedging
B
Economic growth is measured by gross domestic product (GDP) and reflects a nation's ________. A. currency valuation B. economic activity C. unemployment rate D. balance of trade E. budget deficits or surplus
B
In the past one hundred years, the most fundamental change in the world economy is the ________. A. struggle between capitalism and socialism B. emergence of global markets C. movement of auto manufacturing to China D. creation of the World Trade Organization E. creation of the European Union
B
A country with a negative current account balance has a(n) ________. A. currency revaluation B. trade surplus C. trade deficit D. inflow of money from sales of exports that exceeds the outflow of money to pay for imports E. currency devaluation
C
Gross Domestic Product (GDP), a measure of a nation's economic activity or the size of its economy, is calculated by adding all of the following factors EXCEPT ______________. A. investment spending B. government purchases C. consumer spending D. industry purchases E. net exports
D
The World Bank has developed a classification system that uses ________ as a base. A. population B. gross national product annual growth rate C. gross national product D. per capita gross national income E. average household income
D
The average U.S. price of a Big Mac is $5.06; in China, the price is 19.19 yuan. If we divide 19.19 by 6.78 (the yuan/dollar exchange rate), we get 2,83. Using the Big Mac Index, what does this show? A. The Big Mac is more popular in China than in the United States. B. The Chinese yuan is overvalued when compared to the U.S. dollar. C. The Big Mac is less expensive in the United States than in China. D. The Chinese yuan is undervalued against the U.S. dollar. E. Beef is less expensive in China than in the United States.
D
The record of all economic transactions between the residents of a country and the rest of the world is called ________. A. National Sales Report B. World Trade Transaction Report C. National Economic Analysis D. balance of payments E. Sovereign Wealth Plan
D
The fastest-growing sector of world trade is trade in ______________. A.automotive manufacturing B. alcohol C. oil D. services E. agricultural produce
D
The high-income democracies of the United States, Japan, Germany, France, Britain, Canada, and Italy comprise what is known as ________. A. the Group of Twenty B. BRICS C. OECD D. the G-7 E. BEMS
D
Today, the economies of North America and the EU function according to the tenets of ______________. A. market socialism B. centrally planned socialism C. communism D. market capitalism E. centrally planned capitalism
D
Which of the following World Bank classifications includes countries that are developing or industrializing? A. Big emerging markets B. Low-income countries C. High-income countries D. Upper-middle-income countries E. Lower-middle-income countries
D
Market capitalism is an economic system in which __________. A. the state has broad powers to serve the public interest as it sees fit B. a highly regulated economic system is also market oriented C. market-allocation policies are permitted within an overall environment of state ownership D. an economic system in which command resource allocation is utilized extensively in an overall environment of private resource E. individuals and firms allocate resources and production resources that are privately owned
E
The United States is a major trader in ________, the fastest growing segment of world trade. A. textiles B. food and beverage C. commodities D. automobiles E. services
E
Which of the following explains why Sweden's economic system is considered a hybrid of capitalism and centrally planned socialism? A. The Swedish government has tight controls over production. B. Sweden conforms to the Anglo-Saxon model of market systems. C. The government does not hold ownership share in corporations. D. Resource allocation is market oriented. E. Sweden operates as a so-called "welfare state" where the government provides a strong social safety net.
E
Low-income countries have a GNI per capita of approximately $1,005 or less. The general characteristics shared by countries at this income level include all the following EXCEPT_____________________. A. high birth rates and short life expectancy B. high agricultural population C. political unrest D. heavy reliance on foreign aid E. high literacy rates
E
