Question 1

Which of the following correctly describes how the "global pie is baked"?

Accepted Answer

According to the article, advanced economies account for about 50 percent of the value of the world's production, indicating that the majority of the global pie is baked in developed countries.

None of the other answer choices accurately describe how the global pie is baked according to the information provided in the article.

Question 2

Which of the following is an example of an effort to decrease physical capital differences between an advanced and a developing economy?

Accepted Answer

American troops building roads in Afghanistan is an example of an effort to decrease physical capital differences between an advanced and a developing economy. This helps to improve infrastructure in the country, which can lead to increased economic activity and development.

Question 3

________ the owners of the factors of production, while ________ what amounts of those factors to hire.

Accepted Answer

Households own the factors of production (land, labor, capital, and entrepreneurship) and firms determine the amounts of those factors to hire based on their production needs and costs. The government may play a role in regulating or influencing the factors of production, but they do not ultimately determine their ownership or usage.

Question 4

________ economies include ______________.

Accepted Answer

The answer of ________ economies include ______________.
...

Question 5

Dan missed class the day the professor covered the circular flow model.Dan asked his friend Joan to explain markets to him.Joan correctly stated that a market

Accepted Answer

A market is any arrangement that brings buyers and sellers together, regardless of whether it is physical or digital. It does not necessarily require a written contract or a specific number of buyers or sellers.

Question 6

The emerging market economies are

Accepted Answer

Emerging market economies are characterized by their transition from state-controlled to market-driven economic systems. Hence, option B is the best choice. Option A is partly correct as China and India are the two largest emerging market economies, but not all emerging market economies are included in this grouping. Option C is incorrect as most of the nations in Western Europe are developed economies. Option D is incorrect as emerging market economies can be both agricultural and non-agricultural. Option E is incorrect as emerging market economies are generally known to have lower standards of living compared to developed economies.

Question 7

The percentage of the world's population that lives in the advanced economies is

Accepted Answer

The answer of The percentage of the world's population that...

Question 8

Poland is classified as

Accepted Answer

The answer of Poland is classified as
...

Question 9

Which of following groups of countries are all advanced economies?

Accepted Answer

All of the countries listed in option B (Hong Kong, Japan, France, and the United Kingdom) are considered advanced economies by the International Monetary Fund (IMF). Australia and the United States in option A are also advanced economies, but Brazil is not. China and Russia in option C are considered emerging markets by the IMF, while Italy is an advanced economy. Singapore and France in option D are advanced economies, while Russia is an emerging market and Chad is a low-income country. Canada and Germany in option E are advanced economies, while Mexico is an emerging market and Egypt is a low-income country.

Question 10

Among the United States, Canada, Russia, India, and the United Kingdom, the country with the highest average income per person is

Accepted Answer

The United States has the highest average income per person among the listed countries, due to its strong economy and high levels of productivity.

Question 11

As a percentage of total world production, production in the 29 advanced economies is about ________ percent of total world production and in the 118 developing economies is about ________ percent of total world production.

Accepted Answer

Advanced economies, despite their relatively small number in comparison to developing economies, are highly productive and contribute a significant portion to the world's total production. The 29 advanced economies account for approximately 53% of the total world production, showcasing their efficiency and technological advancement. The 118 developing economies, while numerous, contribute about 39% to the total world production, reflecting their growing but still developing economic capabilities.

Question 12

The charitable organization Creating Hope International trains women in Afghanistan to become tailors.This effort reduces

Accepted Answer

Training women to become tailors increases their human capital, which can help bridge the gap in terms of skills and education between advanced and developing economies. It also provides them with an opportunity to start their own businesses, which helps to reduce entrepreneurship differences between the two types of economies. However, it does not specifically address manufacturing or agricultural differences.

Question 13

The majority of the value of production in the world economy is produced in

Accepted Answer

The majority of the world's production value is generated in advanced economies, which include countries with developed and sophisticated markets, high levels of income, and technological infrastructure. These economies have a significant impact on global economic trends and contribute the most to the world's GDP.

Question 14

Income equality has

Accepted Answer

Income inequality has generally increased within many countries over recent decades, particularly in advanced economies like the United States. However, on a global scale, income inequality between countries has narrowed, partly due to rapid economic growth in previously lower-income countries, such as China and India.

Question 15

Nigeria would be classified by the International Monetary Fund as

Accepted Answer

Nigeria is classified as a developing economy by the International Monetary Fund based on its level of economic development, technological advancements, and other indicators such as GDP per capita, literacy rate, life expectancy, etc.

Question 16

The world population is approximately ________ people.

Accepted Answer

The world population is currently around 6.8 billion people. Option A and E are not accurate as they are mixing up million and billion. Option B is an exaggeration as the current population is nowhere near 2 trillion. Option D is also an exaggeration as it is much higher than the current population count.

Question 17

Of the following, the country with the highest average income per day in the world is

Accepted Answer

The United States has the highest average income per day in the world, according to data from the World Bank. Other high-income countries like Japan, France, and Germany also have relatively high average incomes, but the United States surpasses them. China, on the other hand, has a lower average income per day compared to these countries.

Question 18

Physical capital differences across countries can be seen in the fact that

Accepted Answer

Physical capital refers to the tools, machines, buildings, and other equipment used in production. More advanced economies typically have higher levels of physical capital, including more sophisticated technology, which allows for greater efficiency and productivity.

Question 19

Compared to the developing economies, the advanced economies have ________ human capital and ________ physical capital.

Accepted Answer

Advanced economies typically have more human capital due to better education and training systems, and more physical capital due to higher levels of investment in infrastructure and technology.

Question 20

In the advanced economies, ________ of the factories use advanced capital equipment and in the developing economies ________ of the factories use advanced capital equipment

Accepted Answer

The question states that in advanced economies, "virtually all" factories use advanced capital equipment, which implies that it is not true for all factories. Therefore, option A can be eliminated. The question also states that in developing economies, "some" factories use advanced capital equipment. Therefore, option B is incorrect. Option C can be eliminated as it suggests that no factories in developing economies use advanced capital equipment, which is not supported by the information given. As for option D, it suggests that "none" of the factories in developing economies use advanced capital equipment, which contradicts the information given. Option E is the best choice since it suggests that "virtually all" factories in advanced economies use advanced capital equipment, and "some" factories in developing economies use advanced capital equipment, which are both supported by the information given in the question.

Quiz 2: The Usand Global Economies