Practice Quiz: Chapter 06

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. Which of the following is NOT part of the GDP equation?

Consumer spending correct incorrect

Exports correct incorrect

Productivity correct incorrect

Business investment correct incorrect

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. Which of the following is NOT considered an example of government spending?

Military correct incorrect

Physical infrastructure correct incorrect

Consumer goods correct incorrect

Social programs correct incorrect

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. Which of the following best describes the economy when interest rates go up?

The economy shrinks because money is more expensive and people spend less correct incorrect

The economy grows because money is cheaper and people spend more correct incorrect

The economy shrinks because imports are more expensive and people buy less correct incorrect

The economy grows because exports are cheaper and people sell more correct incorrect

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. What does hyperinflation mean?

Rapid and unpredictable price decreases correct incorrect

Stable and controlled price decreases correct incorrect

Stable and controlled price increases correct incorrect

Rapid and unpredictable price increases correct incorrect

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. Which country had the world's largest trade surplus, as of 2015?

China correct incorrect

Japan correct incorrect

Germany correct incorrect

United States correct incorrect

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. Which country has the most trade-reliant economy in the world (by percentage of national GDP)?

Australia correct incorrect

Belgium correct incorrect

Germany correct incorrect

Sweden correct incorrect

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. What is the world's most actively traded good (by dollar value)?

Electronics correct incorrect

Food correct incorrect

Oil and gas correct incorrect

Vehicles correct incorrect

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. Which of the following best describes a tariff?

A tax on foreign goods to make them more expensive relative to domestic goods correct incorrect

A tax on domestic goods to make them more expensive relative to foreign goods correct incorrect

An investment on foreign goods to make them cheaper relative to domestic goods correct incorrect

An investment on domestic goods to make them cheaper relative to foreign goods correct incorrect

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. Which of the following countries is NOT considered one of the Asian Dragons/Asian Tigers?

Singapore correct incorrect

Japan correct incorrect

China correct incorrect

Vietnam correct incorrect

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. What area do the world's very top multinational corporations NOT specialize in?

Health care correct incorrect

Oil correct incorrect

Internet correct incorrect

Manufacturing correct incorrect

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. Natural resource endowments are the most important drivers of a national economy's growth.

TRUE correct incorrect

FALSE correct incorrect

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. Gross domestic product is the total value of goods and services imported into a country in one year.

TRUE correct incorrect

FALSE correct incorrect

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. The Canadian dollar is one of the world's most important and frequently traded currencies, as of 2018.

TRUE correct incorrect

FALSE correct incorrect

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. Since World War II, the British pound has been the world's principal reserve currency.

TRUE correct incorrect

FALSE correct incorrect

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. As of 2015, the United States had the world's largest trade deficit.

TRUE correct incorrect

FALSE correct incorrect

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. The United States has the world's most active trading economy.

TRUE correct incorrect

FALSE correct incorrect

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. Quotas are protectionist measures that outright prohibit certain goods from entering a country.

TRUE correct incorrect

FALSE correct incorrect

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. A country's capital account reflects its international trade surplus or deficit with the rest of the world.

TRUE correct incorrect

FALSE correct incorrect

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. Multinational corporations are large, for-profit business enterprises with offices, branches, or outlets in many countries.

TRUE correct incorrect

FALSE correct incorrect

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. Fair trade prices tend to be lower than free trade prices.

TRUE correct incorrect

FALSE correct incorrect