Question 6: Which of the following economic goals focuses on equal opportunities for education? (5 points)
-Equity
-Freedom
-Growth
-Security
Question 7: Marcel takes out student loans and works part-time to put himself through college. In time, he earns an advanced medical degree and goes to work in an understaffed city -hospital. Marcel's economic decisions benefit the goal of efficiency by (5 points)
-making his own job
-related decisions
-paying back loans to reduce the debt
-contributing to the nation's productivity
-taking advantage of equal opportunities
Question 8: Two countries produce milk and dairy products efficiently. Neither has an absolute advantage. However, Country A exports milk to Country B, and Country A imports cotton from Country B. Which of the following is inferred? (5 points)
-The opportunity cost of producing milk is lower for Country A.
-The opportunity cost of producing cotton is higher for Country B.
-Country A has a natural resource advantage in cotton.
-Country B has a natural resource advantage in milk.
Question 9: Worker hours to produce one unit of natural gas; Worker hours to produce one unit of oil; Brazil 4 9; Argentina 2 10; Mexico 3 7; United States 1 6. According to the chart, which country has the comparative advantage in oil production? (5 points)
-Brazil
-Mexico
-Argentina
-United States
Question 10: The United States can manufacture books at a much more rapid pace than manufacturers in Indonesia. Which of the following is a reason? (5 points)
-Indonesia, as a developed country, has a highly paid and experienced workforce
-Indonesia, as a developing country, has a less advanced manufacturing infrastructure
-The United States, as a developing country, has a high comparative advantage in manufacturing.
-The United States, as a developed country, has a lower cost of living than Indonesia
Question 11: A group of nations establishes a free-trade zone. What is the most likely effect? (5 points)
-Cost of trade increases
-Exports decrease
-Imports decrease
-Trade increases
Question 12: The United States may have a tariff on cotton products from China in order to (5 points)
-prevent Chinese manufacturers from losing profit because of low prices
-protect the business of the American cotton growers and manufacturers
-stop trade due to political disagreement on economic policy
-promote sales in the United States of cotton products from China
Question 13: A Chinese international salesperson hoping to increase exports to the U.S. may worry about the inflation of the U.S. dollar because the inflation may (5 points)
-increase the United States' supply of Chinese products
-decrease tariffs on Chinese products sold to the United States
-increase taxes on the United States' products sold to China
-reduce the United States' demand for Chinese products
Question 14: How would a strong U.S. dollar impact the trade of grain produced in the United States? (5 points)
-U.S. grain exports decrease
-U.S. grain exports increase
-U.S. grain imports decrease
-U.S. grain imports stagnate
Question 15: Which of these can be a result of inflation? (5 points)
-Businesses grow cautious about spending
-The government has to cut spending
-The price of household items increases
-Workers benefit from a lower cost of living
Question 16: If the inflation rate increases faster than their income, people will most likely (5 points)
-use a higher proportion of their incomes on basic needs
-spend a lower proportion of their incomes on basic needs
-get more goods and services for less money
-obtain fewer goods and services for less money
Question 17: To increase your standard of living, your wages must (5 points)
-rise faster than the inflation rate
-rise more slowly than the inflation rate
-keep pace with the inflation rate
-have a negative inflation rate
Question 18: Look at the map showing the European Union (EU) and its free-trade agreement (FTA) countries. Which is true about most current EU free-trade agreements? (5 points)
-The European Union's free-trade agreements are with all of the most developed nations in the world.
-The European Union's free-trade agreements include agreements with both developed and developing nations.
-The European Union's free-trade agreements focus on nations with access to overland trade routes
-The European Union's free-trade agreements focus on the Southern Hemisphere, as distant countries have access to goods not grown in Europe.
