ECO 365 Week 5 Knowledge Check NEW .pdf
Original filename: ECO 365 Week 5 Knowledge Check NEW.pdf
This PDF 1.5 document has been generated by Microsoft® Office Word 2007, and has been sent on pdf-archive.com on 22/06/2016 at 11:38, from IP address 43.224.x.x.
The current document download page has been viewed 227 times.
File size: 309 KB (4 pages).
Privacy: public file
Download original PDF file
ECO 365 Week 5 Knowledge Check NEW
Check this A+ tutorial guideline at
1. What problem do economists see with free trade areas such as NAFTA and
the European Union?
A. They tend to lead to free trade rather than fair trade.
B. They can lead to regional trading blocs then restrict trade.
C. They lead to globalization.
D. They encourage countries to rely on others rather than being self-sufficient.
2. A group of countries that allows free trade among its members and puts up
common barriers against all other countries' goods is called
A. a tariff-free zone
B. a most-favored nation agreement
C. an autarky
D. a free trade association
3. Mexico has a comparative advantage in producing corn
A. if its opportunity cost of producing corn is higher than the opportunity cost in
B. if its opportunity cost of producing corn is the same as the opportunity cost in
C. if its opportunity cost of producing corn is lower than opportunity cost in
D. regardless of the opportunity cost in other countries
4. Workers in education, health care, and government sectors have
A. seen their incomes fall just like in manufacturing
B. been mostly hurt from globalization
C. benefited from globalization in terms of lower consumer prices
D. been hurt because the sector has been shrinking
5. In the United States globalization has
A. played a significant role in growing income disparity because some sectors
have benefited and others have not
B. played little role in growing income disparity because all Americans are
consumers who have enjoyed lower prices
C. played a significant role in growing income disparity because foreign workers'
incomes have risen
D. played little role in growing income disparity because while some jobs were
lost, the gain in jobs balanced out those that were lost
6. Most economists
A. oppose free trade
B. favor free trade
C. have no opinion on free trade
D. would prefer to have no trade with other nations
7. World trade declined in the 1930s. Which of the following is the best
explanation of that decline?
A. World income shrank and trade restrictions increased.
B. World income shrank, but there were few changes in trade restrictions
C. Trade restrictions increased, but there was little change in world income
D. The incomes of most nations increased, allowing them to become more selfsufficient.
8. As a country develops economically, what changes usually take place in the
goods it exports?
A. There is little change because comparative advantage does not change.
B. Raw materials and agricultural products decline in importance and are
replaced by services and manufactured goods.
C. Services and manufactured goods decline in importance and are replaced by
raw materials and agricultural products.
D. Exports go from being diversified to being specialized in whatever the
country finds to be its comparative advantage.
9. When a U.S. company establishes a call center in India that answers its
customer service calls, the United States is
A. outsourcing, a form of importing services
B. outsourcing, a form of exporting services
C. insourcing, a form of importing services
D. insources, a form of exporting services
For more classes visit