Question

1 . Two countries shown in the chart ranked higher in overall development than the United States did. The United States had a higher per capita GDP than these countries. What factors accounted for the higher rankings of these countries?
A. Iceland had the highest rankings in all factors except per capita GDP.
B. Both countries had higher life expectancy; Iceland had higher school enrollment.
C. Per capita GDP is a less accurate measure of development than GDP.
D. Japan’s life expectancy and school enrollment were the highest listed.

Answer 1

2. After World War II, the U.S. gave money to countries in Asia to help them rebuild. What is this an example of?
A. debt rescheduling
B. foreign direct investment
C. foreign portfolio investment
D. foreign aid

3.To alleviate negative externalities of deforestation and to secure economic growth, environmental scientists propose
A. sustainable development.
B. clear-cutting.
C. replacing forests with farmland.
D. using fertilizers.

4. Writer Thomas Friedman compared the new globalized economy to a race that competitors must run over and over again. What did he mean by this?
A. People will need to reinvent the same products over and over.
B. Companies will have to travel farther and faster than ever before.
C. The future world economy will be very fast-paced.
D. To be competitive, companies must continue to be innovative.

5.Which of the following is a negative externality of creating a hydroelectric dam on a major river?
A. lakes for tourists
B. energy creation
C. improved flood control
D. environmental impact

6. Suppose you are the leader of a small country with a developing economy in Latin America. You want your country to have a greater voice in the global economy. What organization should you join?
A. World Trade Organization
B. International Monetary Fund
C. Group of 20
D. European Union

7.Which of the following best summarizes the Russian economy between 1998 and 2007?
A. Its economy was in crisis until the price of oil began to rise.
B. Its economy remained stagnant and did not recover.
C. Its economy was transitioned to a centrally planned system.
D. Its economy collapsed as the Soviet Union broke apart.

8. What is the Group of 20?
A. a group of environmental scientists from 20 countries
B. a group of 20 multinational corporations
C. a group of finance ministers from growing countries, the United States, and the EU
D. a group of international aid organizations

9. The country of Lilvania has a low per capita GDP, a low literacy rate, and a high infant mortality rate. What is Lilvania?
A. a developed country
B. a less developed country
C. a newly industrialized country
D. a transitional country

10. After World War II, the U.S. government loaned and granted money to needy countries in Europe in the hopes of promoting democracy. This program was an example of
A. debt rescheduling.
B. foreign direct investment.
C. foreign portfolio investment.
D. foreign aid.

Answer 2

11. What is one result of increased interconnection among financial markets?
A. Global competition has decreased.
B. The influence of multinational corporations is more limited.
C. Migration to developing nations has increased.
D. Economic problems in one nation spread to other nations.

12. Comparative advantage is the ability to produce more of a given product using a given amount of resources.
A. True
B. False

13. Which of the following is not a benefit of foreign trade?
A. it is mutually beneficial because nations enjoy a bigger variety of products
B. Nations become dependent on each other
C.
it allows each country to produce the goods for which they have the lowest opportunity cost.

D. Specialization creates better products

14. Which issue has led to conflict between developing nations and environmentalists?
A. offshoring
B. deforestation
C. innovation
D. migration

15. If the population growth of less developed countries continues at its current rate, the population of these nations is expected to double in 40 years. What will be the mostly likely consequence of this rapid population growth?
A. The population will be rapidly aging, and these nations will require more healthcare facilities and trained healthcare workers.
B. Large numbers of people will be expected to emigrate from these countries, and nearby nations will bear the burden of the migrating population.
C. These countries will find a way to keep up with the demand for more schools, employment opportunities, and agricultural and industrial output.
D. Standards of living will fall because the country cannot raise per capita GDP faster than the population rate is growing.

16. Why does globalization sometimes cause job loss in developed nations?
A. Globalization prevents companies from hiring more workers.
B. The movement of jobs to other countries can cause unemployment.
C. Working conditions in LDCs are often worse than in developed countries.
D. Globalization forces workers to migrate to developed countries

17. Why is a high level of subsistence agriculture a characteristic of less developed countries?
A. It shows that the infant mortality rate is high.
B. It shows that the country uses less energy.
C. It means that more people are unemployed or underemployed.
D. It means that there are fewer workers available to work in industrial jobs.

18. Why is it sometimes hard for LDCs to use their natural resources efficiently?
A. LDCs cannot afford to buy technology to develop their resources.
B. Natural resources are not evenly distributed throughout the world.
C. LDCs do not want to use technology to develop their resources.
D. The climate is often too harsh to allow them to develop their resources.


19. In 1999, India did not have shopping malls. It now has more than 100 malls. Which of the following explains this rapid development?
A. The largest economic growth has taken place in construction.
B. Uneducated people in rural areas are demanding malls.
C. The middle class is increasing demand for consumer goods.
D. The gap between rich and poor is shrinking.


20. Which statement describes both Nigeria and Venezuela?
A. Both countries have a free market economy.
B. Both countries have rich supplies of a valuable natural resource.
C. Both countries have become major manufacturing powers.
D. Both countries have tried to diversify their economies.