Final

Question 1

The concept of international trading is a
modern-day creation. T/F

Answer 1

F

Question 2

The Silk Road as a trading route was not
global in scope because it did not cross any
ocean. T/F

Answer 2

T

Question 3

The Galleon Trade was the first trading
route which connected the Americas with
Asia and the rest of the world. T/f

Answer 3

T

Question 4

When European nations began trading in
the 16th century, they employed protectionist
policies. T/f

Answer 4

T

Question 5

The Galleon Trade was part of the age of
capitalism. T/f

Answer 5

F(mercantilist)

Question 6

During the Mercantilist era, currencies
were based on the gold standard. T/F

Answer 6

T

Question 7

The Great Depression was worst and
longest crisis experienced by Western
world. T/f

Answer 7

T

Question 8

Keynesian economics believe that crises
occur when money is not being spent,
thereby, not moving. T/f

Answer 8

T

Question 9

The active role of governments in managing spending served as the anchor of global Keynesian system. T/f

Answer 9

T

Question 10

The main purpose of the GATT was to
impose high tariffs and other hindrances to
free trade. T/f

Answer 10

F (lower tariffs)

Question 11

Western countries opposed the rise in prices during the Keynesian era as it resulted to a recession. T/f

Answer 11

F

Question 12

During the Keynesian era, economies chose to practice austerity measures, policies which led to economic downturn.
T/f

Answer 12

F

Question 13

The 1970s Arab Oil Embargo aided Western Countries which were friends with Arab countries. T/f

Answer 13

F

Question 14

Laissez-faire advocates believe government intervention in economies distort the proper functioning of the market. T/f

Answer 14

T

Question 15

The Washington Consensus advocated
minimal government spending to reduce
government debt. T/f

Answer 15

T

Question 16

Neoliberalism called for privatization of government-controlled corporations believing a free market can produce economic prosperity. T/f

Answer 16

T

Question 17

The privatization of industries post-Communist Russia succeeded in freeing the industries from corrupt bureaucrats. T/f

Answer 17

F

Question 18

The 2008 recession came about because banks became less discriminating in issuing loans granting them even to people who had had no capacity to pay their loans back. T/f

Answer 18

T

Question 19

The banking crisis in the US in 2008-2009 spread around the world. T/f

Answer 19

T

Question 20

The Philippines was not severely affected by the 2008-2009 crisis because our economy is bigger than that of the United States’. T/f

Answer 20

F

Question 21

The austerity measures imposed by lenders on Greece led to high growth and high employment. T/f

Answer 21

F

Question 22

The $787 billion stimulus package approved by Congress led the US to recover fast from the recession. T/f

Answer 22

T

Question 23

The 2008-2009 economic crisis in Europe sparked political upheavals causing far-right parties to win in elections. T/f

Answer 23

T

Question 24

Experts say it is still possible for the world to backtrack and close economies to world trade.

Answer 24

T

Question 25

Today, Third World economies account for a majority of global exports. T/f

Answer 25

T

Question 26

Even under WTO regulations, many developed countries like Japan have remained protectionists. T/f

Answer 26

T

Question 27

Governments of Third World countries have benefited the most under the open trade system. T/f

Answer 27

F

Question 28

Subsidies given by foreign governments to their producers led to the collapse of many local industries in poor countries. T/f

Answer 28

T

Question 29

The economic might of rich nations enabled them to dodge WTO regulations to the detriment of poor nations. T/f

Answer 29

T

Question 30

Faced with protectionist policies from powerful countries, poorer countries can do very little to make economic globalization more just. T/f

Answer 30

T

Question 31

It was the oldest international trading route.

Answer 31

Silk road

Question 32

The Galleon Trade linked Acapulco in Mexico with this Asian city.

Answer 32

Manila

Question 33

During this event, countries abandoned the gold standard when reserves were depleted.

Answer 33

WW I

Question 34

Returning to a pure currency standard became difficult because of this event which happened from the 1920s -1930s

Answer 34

Great Depression

Question 35

Monetarists blame this widely used system in the middle of the 20 century, for limiting the amount of money in circulation, thus reducing demand and consumption.

Answer 35

Gold standard

Question 36

The gold standard was totally abandoned during this period.

Answer 36

1970s

Question 37

Today, world economies operate on currencies whose values are determined by this.

Answer 37

Cost relative to other currencies

Question 38

After the World Wars, leaders sought to create a global economic system that would ensure this.

Answer 38

Longlasting global peace

Question 39

This was inaugurated in 1944 to prevent catastrophes of early decades from re-occurring and affecting international ties.

Answer 39

Breton Woods System

Question 40

This was created to be a global lender of last resort to prevent countries from spiraling into credit crises.

Answer 40

International Monetary Fund

Question 41

After Bretton Woods, various countries also committed themselves to further economic integration through this.

Answer 41

General Agreement on Tariffs and Trade

Question 42

The Bretton Woods system was influenced by the theories of this economist

Answer 42

John Maynard Keynes

Question 43

During the early 1970s, the price of oil rose due to this.

Answer 43

Oil embargo

Question 44

This happened after the US stopped linking the dollar to gold.

Answer 44

Stock market crashed 1973-1974

Question 45

This refers to decline in economic growth and employment which takes place alongside a sharp increase in prices.

Answer 45

Stagnation

Question 46

The Arab oil embargo came as a result of Western countries selling arms to this country.

Answer 46

Israel

Question 47

He argued pouring money into economies caused inflation by increasing demands, without necessarily increasing supply.

Answer 47

Milton Friedman

Question 48

This organization succeeded the effort of tariff reduction under GATT.

Answer 48

WTO

Question 49

The so-called Neo-liberal policies of the 1980s-2000s operated under this system.

Answer 49

Washington Consensus

Question 50

They pressured governments of the developing world, to reduce tariffs and open up their economies, arguing it is the quickest way to progress.

Answer 50

Neoliberalism

Question 51

US President Ronald Reagan and this politician justified reining in government spending to reduce the national debt.

Answer 51

Margaret Thatcher

Question 52

The collapse of communism in Russia entrenched these people in power.

Answer 52

Oligarchs

Question 53

Neo-liberalism was largely discredited when it came under severe stress during this event

Answer 53

Recession (2008 - 2009)

Question 54

This island country had a hard time refinancing its three largest banks as the banks’ assets are bigger than the entire country’s GDP.

Answer 54

Iceland

Question 55

The 2008-2009 recession came as a result of this.

Answer 55

Easingbank restriction

Question 56

High risk mortgages where borrowers defaulted are known as these.

Answer 56

Sub-prime mortgages

Question 57

It was said that this triggered the massive borrowings which resulted to the recession of 2008-2009.

Answer 57

Growth housing sector

Question 58

The loan default entered into by borrowers during the housing bubble led banks to this.

Answer 58

Collapse

Question 59

It is said that these are what have mostly benefited from world trade.

Answer 59

Transnational Corporations

Question 60

It is said that the main concern of transnational corporations is this.

Answer 60

Profit

Question 61

The following are terms referring to government infusions of money into the economy:

Answer 61

Bailout Subsidies Pump priming Kick-starting the economy Stimulus package

Question 62

The following are terms used to refer to a recession:

Answer 62

Slowing down the economy Sluggish economy Spiraling economy Ecomonic down turn Fiscal crisis

Question 63

The following are examples of mandated government support for the labor sector:

Answer 63

Minimum wage Maximum hours guarantee Non-discriminatory hiring Safe and healthy working space Unemployment benefits

Question 64

The following favor less government intervention in the economy:

Answer 64

Republican Reagan Fiscal Conservatism Big business Neo-liberal

Question 65

The following favor more government intervention in the economy:

Answer 65

Fiscal Liberal John Maynard Keynes Socialist Labor union Labor sector

Question 66

This fiscal policy boosts the economy by putting money into producer’s hands.

Answer 66

Supply-side policy

Question 67

High spending coupled with low taxation would result to this.

Answer 67

Fiscal crisis

Question 68

Supply-side economics is also known as this.

Answer 68

Reaganomics

Question 69

This refers to revenue collected from what people gain from the sale of stocks.

Answer 69

Capitan gains tax

Question 70

Too little money in circulation results in a slowing economy; the solution is this.

Answer 70

Lowering the cash reserve that banks are required to deposit with the CB.

Question 71

Too much money in circulation results to an inflation; the solution is this.

Answer 71

Raising of interest rate

Question 72

Fiscal policy involves this.

Answer 72

Tax Spending

Question 73

Monetary policy involves this.

Answer 73

Manipulation of money in circulation

Question 74

The accumulation of budget deficits would result to the ballooning of this.

Answer 74

National debt

Question 75

It refers to a condition when the governments expenditures exceed its revenues.

Answer 75

Deficit

Question 76

It is an economic principle that holds that firms should fulfill as many of society’s needs as possible while using as few of its resources as possible.

Answer 76

Efficiency

Question 77

Burdens that society incurs when firms fail to pay the full cost of production are called externalities and this is an example.

Answer 77

Pollution

Question 78

Between fiscal policy and monetary policy, this one takes less time to implement and is thus used often by governments.

Answer 78

Momentary policy

Question 79

Changes in fiscal policy are undertaken by this

Answer 79

Congress

Question 80

The lowering or raising of interest rates are effected by this.

Answer 80

Central Bank