GGP120 Unit 7- Quiz

Question 1

3 / 3 pts

NAFTA has increased trade in the United States and Canada but decreased trade in Mexico.

True

Correct!

False

See Lecture 7; all 3 nations have seen an increase.

Question 2

0 / 3 pts

Protectionism in the developed world ____________ export growth and _____________ diversification.

Correct Answer

prevents, decreases

prevents, increases

You Answered

encourages, increases

encourages, increases

See Lecture 7; why is this the case?

Question 3

3 / 3 pts

Roles of government in an economy includes ________________.

disruption of competitive markets

preventing equity and fairness

destabilizing national income

Correct!

enforcement of contracts

See Lecture 7; hopefully, none of the others are true in a good government.

Question 4

3 / 3 pts

NAFTA is an example of regionalism.

Correct!

True

False

See Lecture 7; do you think NAFTA has been beneficial overall to the U.S.?

Question 5

3 / 3 pts

In free market economies, supply and demand prevents market equilibrium.

True

Correct!

False

See Lecture 7; supply and demand, in theory, is actually what establishes equilibrium.

Question 6

3 / 3 pts

International interest rates are not tied to a nation’s credit rating.

True

Correct!

False

See Lecture 7; they are central to them.

Question 7

0 / 3 pts

The most contentious function of central banks is _______________ .

You Answered

cashing checks

offering loans

Correct Answer

conducting monetary policy

maintaining deposits

See Lecture 7; this is because it often affects the value of money and, consequently, purchasing power.

Question 8

3 / 3 pts

____________ nations often have an absolute advantage in the global economy.

Correct!

Large

Small

Mid-sized

No

See Lecture 7; what are some reasons this is generally the case?

Question 9

3 / 3 pts

Indicators of economic growth include _______________.

per capita incomes

capital resource flow

neither of the above

Correct!

both of the above

See Lecture 7; both are true.

Question 10

3 / 3 pts

_____________ is the increased interdependence of global economies.

Isolationism

Protectionism

Sustainability

Correct!

Globalization

See Lecture 7; this term is worth remembering for the final.

Quiz Score: 24 out of 30