tb01 - Test Bank to accompany GLOBAL ECONOMIC ISSUES AND...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Test Bank to accompany GLOBAL ECONOMIC ISSUES AND POLICIES CHAPTER ONE Understanding the Global Economy True/False 1. Jubilee 2000 was a worldwide movement to cancel the debts of impoverished nations. Ans: True Dif: E 2. According to Foreign Policy magazine, the smallest economies in the world tend to be the most globalized. Ans: True Dif: E 3. Economists have now defined a clear-cut method for measuring globalization using the Internet. Ans: False Dif: E 4. According to Foreign Policy magazine, the U.S. does not rank in the top 10 most globalized countries in the world. Ans: True Dif: M 5. U.S. businesses operating in a foreign country often pay higher wages and employ stricter environmental standards than similar local companies. Ans: True Dif: E 6. Economic integration refers to the extent to which different countries’ real sectors, but not their financial sectors, are linked. Ans: False Dif: E 169
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
170 Chapter 1 — Test Bank 7. The real sector of an economy refers to the production and exchange of goods, services and financial assets. Ans: False Dif: E 8. Exports minus imports divided by domestic output gives a common measure of a country’s global trade as a share of the total amount of economic activity. Ans: False Dif: M 9. Exports and imports comprise a greater percentage of domestic output in Canada than in the United States. Ans: True Dif: M 10. The value of world exports has increased by more than 900% since 1979. Ans: False Dif: M 11. Foreign direct investment to emerging economies has been negative every year since the East Asian crisis of 1997. Ans: False Dif: M 12. The law of demand states that there is an inverse relationship between quantity supplied and price. Ans: False Dif: E 13. The most important factors influencing demand are consumer tastes and preferences. Ans: True Dif: E 14. An inferior good is one that you purchase less of as your income grows. Ans: True Dif: E 15. An increase in the price of a complementary good will normally decrease demand for the related good. Ans: True Dif: M 16. If the quantity of goods supplied changes at every given price level this is called a movement along the supply curve. Ans: False Dif: M
Background image of page 2
Introduction to the Global Economy 171 17. The most important factor influencing supply is the cost and the availability of inputs or resources. Ans: True Dif: E 18. If the quantity of a good or service supplied increases the price of the good or service is likely to fall, all else equal. Ans: True Dif: E 19. At the market equilibrium price both excess demand and excess supply are zero. Ans: True Dif: E 20. If the quantity of exports for a good exceeds the quantity of imports desired, the price of the good will fall. Ans: True
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 10

tb01 - Test Bank to accompany GLOBAL ECONOMIC ISSUES AND...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online