Deck 3: Geographical Dynamics of the World Economy

Question 1

Which world region now seems to be recapturing the share of world GDP it lost between 1820 and 1950?

A) Europe and Russia
B) North America
C) Asia
D) Africa

Answer 1

C

Question 2

The expansion and contraction of the world economy since the late 1700s is sometimes described in terms of long-term cycles in prices named after the Russian economist Kondratiev. How long on average is each entire growth-stagnation cycle?

A) 20 years
B) 50-55 years
C) 11-15 years
D) 40 years

Answer 2

B

Question 3

The global financial system has experienced a much more rapid pace or speed of transactions since the 1970s. Which type of transaction has experienced the greatest increase in pace?

A) product prices
B) interest rates
C) exchange rates
D) stock prices

Answer 3

C

Question 4

What is a "regional motor" to the world economy?

A) a place where moderate transport costs and high external economies coincide
B) a place with overall lower costs
C) a place with low transport costs
D) a place with high external economies

Question 5

The product life-cycle model states that:

A) as a product "matures" its production can take place where cost advantages are present
B) products become less dependent on "trial and error" fixing once they enter into mass production so they can be produced anywhere
C) production that is routine can be moved abroad
D) mass production is more labour intensive than is early production, it then pays to move production to where labour is cheaper