Question 1

In a(n) ________, the vast majority of people engage in simple agriculture and consume most of their output.
A) raw material economy
B) subsistence economy
C) industrializing economy
D) emerging economy
E) industrial economy

Accepted Answer

In a subsistence economy, most people engage in simple agriculture to provide for their basic needs, with little surplus to sell or trade. This type of economy typically lacks advanced industrialization or modern technology and is common in developing countries or rural areas.

Question 2

Which of the following is an example of a raw material exporting economy?
A) Sweden
B) Russia
C) the United Kingdom
D) Chile
E) Brazil

Accepted Answer

Chile is known for exporting raw materials such as copper, fruit, and forestry products. Brazil is also known for exporting raw materials, but it also has a diversified economy with manufacturing and service sectors. Sweden, the United Kingdom, and Russia have more diversified economies with a mix of raw material exports and other industries such as technology, finance, and manufacturing.

Question 3

In 1994, ________ established a free trade zone among the United States, Canada, and Mexico.
A) GATT
B) WTO
C) NAFTA
D) EU
E) CAFTA

Accepted Answer

NAFTA, or the North American Free Trade Agreement, was established in 1994 and created a free trade zone among the United States, Canada, and Mexico. GATT and the WTO are international organizations related to trade but are not specific to North America. The EU and CAFTA are also trade agreements, but they do not involve the United States, Canada, and Mexico.

Question 4

Economic communities are also known as ________.
A) global firms
B) free trade zones
C) management communities
D) production communities
E) open channels

Accepted Answer

Economic communities are also known as free trade zones, which are areas or regions where member countries agree to eliminate or reduce trade barriers such as tariffs and quotas in order to increase trade among themselves.

Question 5

Trusted Wholesalers is a company that currently purchases products made in Mexico and sells them to companies based in the United States and Canada. Trusted Wholesalers is considering whether to also purchase products produced in Costa Rica and the Dominican Republic. To make their decision, members of management at Trusted Wholesalers will most likely evaluate the agreements made by ________.
A) the EU
B) NAFTA
C) CAFTA-DR
D) MCAN
E) UNASUR

Accepted Answer

CAFTA-DR (Central America Free Trade Agreement - Dominican Republic) is a free-trade agreement between the United States, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua. As Trusted Wholesalers is considering purchasing products from Costa Rica and the Dominican Republic, evaluating the agreements made by CAFTA-DR would be the most relevant in this scenario.

Question 6

In a(n) ________ economy, fast growth in manufacturing results in rapid overall economic growth.
A) industrial
B) industrializing
C) materials exporting
D) subsistence
E) agrarian

Accepted Answer

The answer of In a(n) ________ economy, fast growth in...

Question 7

Which of the following is a threat posed by the EU?
A) Europe could heap favors on firms from EU countries but hinder outsiders by imposing obstacles.
B) European companies have become less competitive.
C) European companies have begun to monopolize international markets.
D) The EU has toughened the international protection of copyrights, patents, and trademarks.
E) The EU has reduced Europe's remaining merchandise tariffs by 30 percent.

Accepted Answer

The option A states that the EU could favor firms from its member countries while creating obstacles for firms from outside of the EU. This could be seen as a threat to non-EU countries who want to do business with the EU.

Question 8

Coffee, tea, cotton, and tobacco are the main exports of Uganda. It is most likely that Uganda has a(n) ________ economy.
A) subsistence
B) marketing
C) merchandise exporting
D) raw material exporting
E) industrializing

Accepted Answer

The answer of Coffee, tea, cotton, and tobacco are the...

Question 9

Which of the following industrial structures presents the fewest market opportunities?
A) subsistence economies
B) raw material exporting economies
C) industrializing economies
D) emerging economies
E) industrial economies

Accepted Answer

Subsistence economies typically have limited market opportunities as they rely heavily on self-sustenance and have little interaction with outside markets.

Question 10

Trusted Wholesalers is a company that purchases products produced in Mexico and sells them to companies based in the United States and Canada. Management at Trusted Wholesalers would most likely be interested in becoming experts in the policies developed by the ________.
A) EU
B) NAFTA
C) CAFTA-DR
D) APTA
E) BRIC

Accepted Answer

NAFTA is the North American Free Trade Agreement, which specifically covers trade between the United States, Mexico, and Canada. As Trusted Wholesalers purchases products produced in Mexico and sells them to companies in the US and Canada, they would be directly impacted by NAFTA policies and would want to understand them thoroughly to ensure compliance and optimize their business operations.

Question 11

Formed in 1957, the ________ set out to create a single European market by reducing barriers to the free flow of products, services, finances, and labor among member countries and developing policies on trade with nonmember nations.
A) Uruguay Round
B) European Union
C) European Organization
D) European Central Bank
E) CAFTA

Accepted Answer

The European Union was formed in 1957 with the goal of creating a single European market by reducing barriers to trade, services, finance, and labor among member countries. The EU also develops policies on trade with nonmember nations. The Uruguay Round was a series of negotiations on international trade that took place in the 1980s and 1990s, resulting in the creation of the World Trade Organization. The European Organization and the European Central Bank are entities within the EU, but they do not encompass the entire organization's goals and functions. CAFTA, or the Central American Free Trade Agreement, is a regional trade agreement between the United States and several Central American countries.

Question 12

A(n) ________ economy is rich in one or more natural resources but poor in other ways and much of its revenue comes from exporting its natural resources.
A) industrial
B) industrializing
C) raw material exporting
D) subsistence
E) agrarian

Accepted Answer

A raw material exporting economy is an economy in which the country is rich in one or more natural resources and much of its revenue comes from exporting these resources. However, the economy may be poor in other ways and may not have developed industries or technology to add value to these natural resources.

Question 13

In 2005, the ________ established a free trade zone between the United States and Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua.
A) CAFTA-DR
B) FTAA
C) CAN
D) NAFTA
E) EU

Accepted Answer

The Central America Free Trade Agreement-Dominican Republic (CAFTA-DR) was established in 2005 to create a free trade zone between the United States and six Central American countries: Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua.

Question 14

The EU helped unify Europe by adopting the ________ as a common currency.
A) Eurodollar
B) euro
C) franc
D) Deutsche Mark
E) peseta

Accepted Answer

The euro was adopted by the European Union (EU) as a common currency. It replaced several national currencies in the EU and helped to unify Europe economically. The Eurodollar is a currency that is used outside of the United States, the franc is a former national currency in France, the Deutsche Mark was a former national currency in Germany, and the peseta was a former national currency in Spain.

Question 15

A(n) ________ community is a group of nations organized to work toward common goals in the regulation of international trade.
A) joint venture
B) strategic marketing
C) economic
D) joint-stock
E) multilateral

Accepted Answer

The answer of A(n) ________ community is a group of...

Question 16

A country's ________ shapes its product and service needs, income levels, and employment levels.
A) international trade system
B) income distribution
C) industrial structure
D) political structure
E) foreign exchange system

Accepted Answer

A country's industrial structure, or the composition of its industries and businesses, have a major impact on its economic needs, such as the types of products and services demanded by consumers and businesses, the level of income generated by various industries, and the number and types of jobs available to the workforce. The other options may also play a role, but industrial structure is the most directly relevant to the factors listed in the question.

Question 17

Which of the following is an example of an economic community?
A) NATO
B) BRIC
C) NAFTA
D) GATT
E) WTO

Accepted Answer

NAFTA (North American Free Trade Agreement) is an economic community that promotes free trade and economic cooperation between the United States, Canada, and Mexico. NATO (North Atlantic Treaty Organization) is a military alliance, BRIC (Brazil, Russia, India, China) is a grouping of four emerging economies, and GATT (General Agreement on Tariffs and Trade) and WTO (World Trade Organization) are international entities that regulate global trade.

Question 18

The two key economic factors reflecting a country's attractiveness as a market are its industrial structure and its ________.
A) communication adaptation
B) nontariff trade barriers
C) exchange controls
D) income distribution
E) transportation systems

Accepted Answer

The two key economic factors reflecting a country's attractiveness as a market are its industrial structure and its income distribution. A country with a strong and diverse industrial structure is more attractive to foreign investors as it indicates a stable and growing economy. Similarly, a country with a well-distributed income is likely to have a larger consumer base with greater purchasing power, making it more attractive for businesses to sell their products or services.

Question 19

Formed in 2004 and formalized in 2008, ________ makes up the largest trading block after NAFTA and the European Union.
A) CAFTA-DR
B) FTAA
C) UNASUR
D) MCAN
E) GATT

Accepted Answer

The answer of Formed in 2004 and formalized in 2008,...

Question 20

Which of the following is a type of industrial structure?
A) marketing economies
B) subsistence economies
C) laissez-faire economies
D) capitalistic economies
E) socialistic economies

Accepted Answer

The answer of Which of the following is a type...

Quiz 19: The Global Marketplace

In a(n) ________, the vast majority of people engage in simple agriculture and consume most of their output.

Which of the following is an example of a raw material exporting economy?

In 1994, ________ established a free trade zone among the United States, Canada, and Mexico.

Economic communities are also known as ________.

In a(n) ________ economy, fast growth in manufacturing results in rapid overall economic growth.

Which of the following is a threat posed by the EU?

Coffee, tea, cotton, and tobacco are the main exports of Uganda. It is most likely that Uganda has a(n) ________ economy.

Which of the following industrial structures presents the fewest market opportunities?

Trusted Wholesalers is a company that purchases products produced in Mexico and sells them to companies based in the United States and Canada. Management at Trusted Wholesalers would most likely be interested in becoming experts in the policies developed by the ________.

Formed in 1957, the ________ set out to create a single European market by reducing barriers to the free flow of products, services, finances, and labor among member countries and developing policies on trade with nonmember nations.

A(n) ________ economy is rich in one or more natural resources but poor in other ways and much of its revenue comes from exporting its natural resources.

In 2005, the ________ established a free trade zone between the United States and Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua.

The EU helped unify Europe by adopting the ________ as a common currency.

A(n) ________ community is a group of nations organized to work toward common goals in the regulation of international trade.

A country's ________ shapes its product and service needs, income levels, and employment levels.

Which of the following is an example of an economic community?

The two key economic factors reflecting a country's attractiveness as a market are its industrial structure and its ________.

Formed in 2004 and formalized in 2008, ________ makes up the largest trading block after NAFTA and the European Union.

Which of the following is a type of industrial structure?