Mod 57 MCQ Quiz
Quiz by Hannah Tapp Thomas
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- Q1
If a country can produce home appliances three times more efficiently than it can produce any other good, its position in international trade is based on
absolute advantage.
competitive advantage.
comparative advantage.
complementarity.
protectionism.
120s - Q2
Which of the following trends is illustrated by the global financial crisis of 2007–2008?
rising global GDP
increasing protectionism
the growth of regional trade agreements
financialization of the world economy
increased regulation of financial institutions
120s - Q3
Tariffs are considered trade barriers because they
increase the costs of imports.
encourage import substitution industrialization.
inhibit investment.
favor developing countries.
none of the above
120s - Q4
Which of the following would NOT be considered a neoliberal policy?
removal of tariffs
government ownership of railroads
privitization of public utilities
creating a free trade agreement
reducing government regulation of banks
120s - Q5
When one or more countries cannot meet their external loan repayment schedule, it is known as
bankruptcy.
underdevelopment.
a debt crisis.
financial capital.
a trade barrier.
120s - Q6
Which of the following best explains a benefit of membership in the European Union?
Member states are eligible to receive loans from the European Union, which protects states against recession.
Member states receive equal numbers of international migrants, which ensures even distribution of resources.
Member states receive annual payments from the European Union, which boosts gross national income.
Member states have more secure borders, which guards against conflict.
Member states form a single market, which creates a powerful economic bloc.
120s - Q7
Which of the following concepts explains the decision to relocate market-oriented factories in the United States from the Midwest and Northeast to locations in the southern United States or Mexico?
Comparative advantage, because products can be made more efficiently in the southern United States and Mexico. Operating costs and wages are lower, and the manufactured products are easily transported to major United States markets.
Growth poles, because governments in southern United States cities and Mexico strive to stimulate economic development by providing a guaranteed market for all products manufactured at these locations.
Just-in-time delivery, because the United States population is shifting to the south and west, and the Mexican population is growing. It is critical to produce goods closer to the consumer base to reduce shipping times.
Complementarity, because the regional economy of the midwestern and northeastern United States is shifting to the service sector. There is little interest in maintaining manufacturing at these locations.
Post-Fordist production, because traditional midwestern and northeastern manufacturing centers in the United States are unable to keep up with the technological changes of modern industry.
300s - Q8
Economic complementarities between two places tend to
reflect only differences in resource base
occur when each place specializes in commodities demanded by the other
occur when the places specialize in the same commodities
reflect the minimization of distance
reflect the maximization of scale
120s - Q9
Which of the following has fostered the most significant economic growth by eliminating import tariffs between member states?
European Union (EU)
Organization of Petroleum Exporting Countries (OPEC)
North Atlantic Treaty Organization (NATO)
Association of Caribbean States (ACS)
United Nations (UN)
120s - Q10
The state of Florida earns greater revenues from the export of oranges than does the state of Georgia. This can be attributed to which of the following?
Florida has a comparative advantage as a producer of oranges.
Georgia has a comparative advantage as a producer of oranges.
Florida’s economy is primarily based on agricultural production.
Georgia’s economy is focused on tourism and manufacturing.
Unlike Florida, Georgia has no coastal port facilities.
120s - Q11
Free-trade zones such as the countries of the North American Free Trade Agreement (NAFTA) are established to increase the ease and volume of international trade by
increasing diplomatic relations between member states
opening borders to migrant guest workers from member states
establishing a common monetary unit among member states
offering large economic-development loans to poorer member states
eliminating tariffs on goods that cross borders between member states
120s - Q12
Which of the following best explains a trading relationship between two countries based on comparative advantage?
One country exports raw materials and the other country exports manufactured goods, resulting in a global economic balance.
One country implements tariffs on goods that are imported from another country because the importing country will benefit from profits on the sale of the goods.
Each country specializes in the type of good for which it has the lowest opportunity cost, resulting in a higher global output of both types of goods.
Two countries trade in luxury items, but the volume of trade is limited by the highest cost of long-distance trade.
Each country exports the same type of good because the countries are similar in terms of natural resources and labor costs.
300s