Economics Assignment
Subject: Economics   / Accounting
Question
1) Which of the following economic institutions aids less developed countries by providing loans
for economic development?
United Nations Development Program
World Bank
International Monetary Fund
Federal Reserve Board
2) The International Monetary Fund assists countries by providing
money.
food and clothing.
advice and technical assistance.
portable housing.
3) Which of the following countries is NOT a developed nation?
United States
Canada
Australia
Mexico 4) Which of the following is NOT a characteristic of a developed country?
low life expectancy
high literacy rates
many educated people
low unemployment
5) What is it called when countries block the importation of certain products into their country?
importation blockade
trade barrier
trade inhibitor
domestic protection act
6) Which of the following is NOT a major import of the United States?
vehicles
clothing
power-generating machinery
airplane parts
7) Which of the following is NOT a major export of the United States?
agricultural products
scientific instruments
telecommunication equipment electrical machinery
8) What is it called when a country can produce an item at a lower opportunity cost?
absolute advantage
efficient advantage
comparative advantage
consistent advantage
9) Which exchange rate system has made international trade easier and allows for fluctuations
in currency values on a day-to-day basis?
fixed exchange rate system
variable exchange rate system
secure exchange rate system
flexible exchange rate system
10) Which of the following countries is NOT involved in the North American Free Trade
Agreement?
United States
Mexico
Nicaragua
Canada
11) One goal of the United Nations Development Program is to rid the world of poverty. True
False
12) The World Bank gets its funds through the sale of bonds in financial markets.
True
False
13) Countries are required to make donations to the World Bank.
True
False
14) In developed countries, a large percentage of the population is made up of subsistence
farmers.
True
False
15) Tariffs are taxes placed on imported goods.
True
False
16) Japan is a major trading partner of the United States.
True
False
17) Technology assistance is one U.S. export.
True
False
18) Countries trade primarily to foster diplomatic relations between each other.
True False
19) Fixed rate exchange systems are calculated according to supply and demand.
True
False
20) Countries that have a traditional economy often develop at a faster pace than free market
economy countries.
True
False
21) In an essay of at least two well-developed paragraphs, explain the global benefits of
international trade and multinational corporations.
22) In complete sentence format, explain (a) two of the three types of trade barriers, (b) the
reasons why countries sometimes establish trade barriers, and (c) the effects trade barriers
sometimes have on the economy.
23) In an essay of at least two well-developed paragraphs, analyze four of the factors that can
affect economic development in some countries.
24) In an essay of at least two well-developed paragraphs, explain why countries enter into free
trade agreements. Provide the names of three trade agreements and provide a brief description
of each. The Reciprocal Trade Agreement Act, North American Free Trade Agreement, and
The World Trade Organization.
25) In an essay of at least three well-developed paragraphs, (a) explain one economic difficulty
for people traveling and conducting business between countries, and (b) describe the two
exchange rate systems and how they function in alleviating these problems.
