Question 1

The ultimate objective of the European Union is to:

Accepted Answer

The ultimate objective of the European Union is to eliminate all trade barriers among member countries (like between the states in the United States).

Question 2

U.S.firms maintain particularly dominant global positions in all of the following industries except:

Accepted Answer

U.S. firms maintain particularly dominant global positions in technology-intensive industries, including computing (hardware and services), telecommunications, media, and biotechnology.

Question 3

A _____ exists when private enterprise reserves the right to own property and monitor the production and distribution of goods and services while the state simply supports competition and efficient practices.

Accepted Answer

A market economy exists when private enterprise reserves the right to own property and monitor the production and distribution of goods and services while the state simply supports competition and efficient practices.

Question 4

Unlike a market economy,a command economy is characterized by:

Accepted Answer

Unlike a market economy, a command economy is characterized by an ignorance of demographic information by management. In a market economy, individuals within the community disclose wants, needs, and desires to which businesses may appropriately respond.

Question 5

_____ is the United States' largest trading partner,a position it has held for many years.

Accepted Answer

Canada is the United States' largest trading partner, a position it has held for many years.

Question 6

A major development in South America is:

Accepted Answer

Despite the ups and downs, a major development in South America is the growth of intercountry trade, spurred on by the progress toward free-market policies.

Question 7

In the context of established economies,the European Union:

Accepted Answer

In the context of established economies, the European Union's goal of a single currency and a regional central bank has finally largely become a reality.

Question 8

After becoming part of the North American Free Trade Agreement (NAFTA)in 1994,Mexico:

Accepted Answer

After becoming part of NAFTA in 1994, Mexico was able to take advantage of the U.S. market. Mexican businesses are producing goods for the U.S. market that were previously purchased by the United States from Asia.

Question 9

By the early 1990s _____ had recovered from its economic problems of the previous decade and had become the strongest economy in Latin America.

Accepted Answer

By the early 1990s Mexico had recovered from its economic problems of the previous decade and had become the strongest economy in Latin America.

Question 10

The Trans-Pacific Partnership (TPP)is a trade agreement among 12 Pacific Rim countries,including:

Accepted Answer

The Trans-Pacific Partnership (TPP) is a trade agreement among 12 Pacific Rim countries, including Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States, and Vietnam.

Question 11

A _____ is comparable to a monopoly in the sense that an organization,in this case the government,has explicit control over the price and supply of a good or service.

Accepted Answer

A command economy is comparable to a monopoly in the sense that an organization, in this case the government, has explicit control over the price and supply of a good or service.

Question 12

In the context of established economies,the United States has considerable foreign direct investment in _____.

Accepted Answer

In the context of established economies, the United States has considerable foreign direct investment in Canada.

Question 13

Identify a characteristic of a market economy.

Accepted Answer

A market economy exists when private enterprise reserves the right to own property and monitor the production and distribution of goods and services while the state simply supports competition and efficient practices. Management is particularly effective here since private ownership provides local evaluation and understanding, opposed to a nationally standardized archetype.

Question 14

Which of the following economies is projected to become the largest by 2050 using market exchange rates?

Accepted Answer

The economy of China is projected to become the largest by 2050 using market exchange rates. China would surge past the United States and Japan as the largest world economic power by 2050.

Question 15

In the context of established economies,which of the following observations about NAFTA is incorrect?

Accepted Answer

Mexican firms, taking advantage of a new arrangement that the government has negotiated with the EU, can also now export goods into the European community without having to pay a tariff.

Question 16

A factory,the majority of which are located in Mexican border towns,that imports materials and equipment on a duty- and tariff-free basis for assembly or manufacturing and re-export is referred to as _____.

Accepted Answer

A factory, the majority of which are located in Mexican border towns, that imports materials and equipment on a duty- and tariff-free basis for assembly or manufacturing and re-export is referred to as a maquiladora.

Question 17

The challenge for the future of the European Union is to:

Accepted Answer

The challenge for the future of the European Union is to absorb its eastern neighbors, the former communist-bloc countries. This could result in a giant, single European market. In fact, a unified Europe could become the largest economic market in terms of purchasing power in the world.

Question 18

Which of the following statements is true of the economic system of North America?

Accepted Answer

The free-market-based economy of North America allows considerable freedom in decision-making processes of private firms.

Question 19

In the context of the shifting balance of economic power in the global economy,which of the following factors has helped boost incomes and wealth in the African continent between 2000 and 2015?

Accepted Answer

In the context of the shifting balance of economic power in the global economy, an increase in the price of agricultural products has helped boost incomes and wealth in the African continent between 2000 and 2015. Also, increases in the price of commodities, such as oil, gas, and mineral and mining products have helped boost incomes and wealth in the continent.

Question 20

A survey of businesspeople from Argentina,Brazil,Chile,Columbia,and Venezuela found that the _____ market,on average,was more important for their economic well-being than any other market.

Accepted Answer

A survey of businesspeople from Argentina, Brazil, Chile, Colombia, and Venezuela found that the U.S. market, on average, was more important for them than any other market.

Quiz 1: Globalization and International Linkages