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web.groovymark@gmail.com
- December 7, 2024
Question 21
Which factor in the CAGE model addresses differences in country size that affect barriers to globalization?
a) Cultural
b) Administrative
c) Geographic
d) Economic
Answer: d) Economic
Explanation:
The economic factor in the CAGE model addresses the differences in size, income levels, and wealth that can create barriers to international trade and business.
Question 22
The measure of inequality among values of a frequency distribution, such as levels of income, is called:
a) Gross Domestic Product
b) Purchasing Power Parity
c) Gini coefficient
d) Human Development Index
Answer: c) Gini coefficient
Explanation:
The Gini coefficient is a measure of income inequality within a population, with 0 representing perfect equality and 1 representing maximal inequality.
Question 23
The measure of how well nations are doing at achieving long, happy, sustainable lives is called:
a) Gini coefficient
b) Human Development Index
c) Gross Domestic Product
d) Happy Planet Index
Answer: d) Happy Planet Index
Explanation:
The Happy Planet Index measures the ecological efficiency of delivering human well-being in countries, taking into account life expectancy, well-being, and ecological footprint.
Question 24
Which argument is used by critics to discourage movement toward globalization?
a) It benefits the environment
b) It increases the wealth of the rich more than the poor
c) It improves local cultures
d) It reduces unemployment
Answer: b) It increases the wealth of the rich more than the poor
Explanation:
Critics argue that globalization primarily benefits wealthy individuals and large corporations, often at the expense of poorer nations and workers.
Question 25
The total value of goods and services produced in a country in a one-year period is known as:
a) Gross national product
b) Purchasing power parity
c) Gross domestic product
d) Human Development Index
Answer: c) Gross domestic product
Explanation:
GDP is a key economic indicator that represents the monetary value of all finished goods and services produced within a country's borders in a specific period.
Question 26
The total value of goods and services provided by a country, both inside and outside of its borders, in a one-year period is called:
a) Gross domestic product
b) Gross national product
c) Human Development Index
d) Purchasing power parity
Answer: b) Gross national product
Explanation:
Gross national product (GNP) measures the total economic output of a country's residents, including income from abroad.
Question 27
Which type of economy is decentralized and allows firms and households to participate in global trade with minimum governmental interference?
a) Command
b) Traditional
c) Market
d) Mixed
Answer: c) Market
Explanation:
A market economy is driven by supply and demand with little government intervention, allowing for competition and private ownership.
Question 28
Which type of legal system is based on a code and focuses on how the law is applied to the facts?
a) Civil
b) Common
c) Religious
d) Customary
Answer: a) Civil
Explanation:
Civil law systems are based on written codes, and judges apply the law to the facts of a case without much reference to past decisions.
Question 29
Which law is based on tradition and precedent, where judicial rulings can stand as precedents for future cases?
a) Religious
b) Customary
c) Civil
d) Common
Answer: d) Common
Explanation:
Common law relies on the precedent of past judicial rulings to guide the outcomes of similar cases, making the legal system more flexible over time.
Question 30
In which legal system does a judge decide the applicable law for the case as a jury determines the facts?
a) Civil
b) Common
c) Customary
d) Religious
Answer: b) Common
Explanation:
In common law systems, the judge interprets the law while the jury determines the facts of the case.
Question 31
Which organization encourages developing countries to borrow for development projects and supports economic growth?
a) International Monetary Fund
b) World Bank
c) World Trade Organization
d) United Nations
Answer: b) World Bank
Explanation:
The World Bank provides loans and financial assistance to developing countries to support infrastructure projects and reduce poverty.
Question 32
Which organization oversees the international monetary system, including exchange rates, and provides financial assistance to member countries?
a) World Trade Organization
b) United Nations
c) International Monetary Fund
d) World Bank
Answer: c) International Monetary Fund
Explanation:
The International Monetary Fund (IMF) focuses on promoting international financial stability, providing financial aid to countries in need, and overseeing exchange rate policies.
Question 33
The difference in total value between payments into and out of a country over a period of time is called:
a) Trade balance
b) Current account
c) Balance of payments
d) Capital account
Answer: c) Balance of payments
Explanation:
The balance of payments is a record of all economic transactions between the residents of a country and the rest of the world over a specified period.
Question 34
Which currency exchange system allows a currency’s value to fluctuate according to market forces?
a) Fixed-rate
b) Pegged
c) Floating
d) Gold standard
Answer: c) Floating
Explanation:
A floating exchange rate system allows the value of a currency to fluctuate based on market forces such as supply and demand.
Question 35
What is the primary purpose of the International Monetary Fund (IMF)?
a) Providing loans to developing nations
b) Overseeing the international exchange rate system
c) Facilitating international trade agreements
d) Settling international disputes
Answer: b) Overseeing the international exchange rate system
Explanation:
The IMF's main purpose is to promote global financial stability by overseeing exchange rates and providing financial assistance to countries in need.
Question 36
Selling government holdings to private companies is referred to as:
a) Nationalization
b) Deregulation
c) Privatization
d) Liberalization
Answer: c) Privatization
Explanation:
Privatization is the process of transferring ownership or control of state-owned assets or businesses to private entities.
Question 37
The removal of regulations or restrictions in a particular industry is called:
a) Privatization
b) Deregulation
c) Liberalization
d) Regulation
Answer: b) Deregulation
Explanation:
Deregulation involves reducing or eliminating government rules and regulations in industries to encourage competition and efficiency.
Question 38
Which type of currency exchange system fixes a currency’s value against another currency or a basket of currencies?
a) Floating exchange rate
b) Fixed exchange rate
c) Pegged float exchange rate
d) Gold standard
Answer: b) Fixed exchange rate
Explanation:
A fixed exchange rate system pegs the value of a currency to another currency, basket of currencies, or other value such as gold.
Question 39
What is a criticism of the World Bank?
a) It focuses too much on developed nations
b) It imposes conditions that may harm developing countries
c) It prioritizes environmental concerns over economic growth
d) It has limited voting power for large economies
Answer: b) It imposes conditions that may harm developing countries
Explanation:
Critics argue that the World Bank’s lending conditions, such as structural adjustment programs, may lead to negative social and economic consequences in developing nations.
Question 40
Which strategic network works toward decreasing tariff rates and protecting commerce and intellectual property globally?
a) United Nations
b) International Monetary Fund
c) World Trade Organization
d) European Union
Answer: c) World Trade Organization
Explanation:
The World Trade Organization (WTO) facilitates international trade by reducing trade barriers, such as tariffs, and enforcing rules to protect intellectual property rights.
