Part 2 Flashcards
Today, much attention is focused on opportunities in the regional block termed as BRICS. The five countries are
________________________.
A. Brazil, Russia, India, Chile, and South Africa
B. Brazil, Russia, India, China, and South Africa
C. Belgium, Russia, India, China, and South Africa
D. Brazil, Romania, India, China, and South Africa
E. Brazil, Russia, Indonesia, China, and South Africa
B. Brazil, Russia, India, China, and South Africa
Low-income countries have a GNI per capita of approximately $1,005 or less. The general characteristics shared by countries
at this income level include all the following EXCEPT_____________________.
A. heavy reliance on foreign aid
B. high birth rates and short life expectancy
C. high literacy rates
D. political unrest
E. high agricultural population
C. high literacy rates
The high-income democracies of the United States, Japan, Germany, France, Britain, Canada, and Italy comprise what is known as \_\_\_\_\_\_\_\_. A. the Group of Twenty B. BRICS C. the G-7 D. BEMS E. OECD
C. the G-7
In which economic category does the majority of the world's population fall? A. Low-income countries B. Upper-middle-income countries C. High-income countries D. Lower-upper-income countries E. Lower-middle-income countries
E. Lower-middle-income countries
The record of all economic transactions between the residents of a country and the rest of the world is called \_\_\_\_\_\_\_\_. A. World Trade Transaction Report B. balance of payments C. National Economic Analysis D. Sovereign Wealth Plan E. National Sales Report
A. World Trade Transaction Report
A \_\_\_\_\_\_\_\_ results when the outflow of money to pay for imports exceeds the inflow of money from the sale of exports. A. trade deficit B. merchandise trade transaction C. balance of payments D. trade surplus E. services trade transaction
A. trade deficit
A country with a negative current account balance has a(n) ________.
A. trade surplus
B. currency revaluation
C. trade deficit
D. inflow of money from sales of exports that exceeds the outflow of money to pay for imports
E. currency devaluation
C. trade deficit
The balance of payments is a record of all economic transactions between the residents of a country and the rest of the world.
It is divided into the current and capital accounts. Current accounts include all the following EXCEPT ______________.
A. services trade
B. manufactured goods
C. humanitarian aid
D. portfolio investments
E. merchandise trade
D. portfolio investments
The balance of payments is divided into what two accounts?
A. Capital and service trade accounts
B. Capital account and trade surplus
C. Current and service trade accounts
D. Current and merchandise trade accounts
E. Current and capital accounts
E. Current and capital accounts
The International Monetary Fund’s Balance of Payments Statistics Yearbook provides ______________ and ______________
activity for all countries in the world.
A. trade statistics; summaries of economic
B. investment statistics; summaries of investment
C. unemployment statistics; summaries of payment
D. job statistics; balance of trade
E. debt statistics; balance of debt
A. trade statistics; summaries of economic
In 2015, which of the following countries was the world's leading exporter? A. China B. Japan C. Germany D. Brazil E. The United States
A. China
The United States is a major trader in \_\_\_\_\_\_\_\_, the fastest growing segment of world trade. A. textiles B. commodities C. automobiles D. food and beverage E. services
E. services
The United States is a major service trader with service exports totaling nearly $750 billion in 2016. This represents
approximately what portion of total U.S. exports?
A. One-half
B. One-third
C. One-tenth
D. One-quarter
E. Three-quarters
A. One-half
According to the WTO's 2015 global export rankings, \_\_\_\_\_\_\_\_\_ is the top-ranking country and export powerhouse over the United States and \_\_\_\_\_\_\_\_\_\_. A. Netherlands, India B. Germany, Japan C. China, Germany D. Germany, China E. Japan, India
C. China, Germany
The fastest-growing sector of world trade is trade in \_\_\_\_\_\_\_\_\_\_\_\_\_\_. A. alcohol B. oil C. automotive manufacturing D. agricultural produce E. services
E. services
According to the Global Software Piracy Study conducted each year by the Business Software Alliance, annual worldwide
losses due to software piracy amount to approximately _______.
A. $350 million
B. $1.2 billion
C. $12.6 billion
D. $800 million
E. $62.7 billion
E. $62.7 billion
A reduction in the value of a nation's currency against other currencies is known as \_\_\_\_\_\_\_\_\_. A. a call option B. devaluation C. economic exposure D. hedging E. a put option
B. devaluation
The so-called Big Mac Index is a “quick and dirty way” of determining __________.
A. which of the world’s currencies are weak or strong
B. the average height of a Big Mac burger
C. the ingredients used to produce the perfect Big Mac hamburger
D. the cost of carry-out food in different countries
E. the price of hamburgers around the world
A. which of the world’s currencies are weak or strong
In 2014, the European Central Bank (ECB) embarked on a course of action that resulted in a decline of the euro’s value, using
a quantitative easing tool. How did the ECB use this tool?
A. It wrote down bad debt in the market.
B. It took over some financial institutions.
C. It reduced interest rates.
D. It began buying tens of billions of euros’ worth of government bonds each month, greatly increasing the
supply of euros.
E. It increased interest rates
D. It began buying tens of billions of euros’ worth of government bonds each month, greatly increasing the
supply of euros.
The average U.S. price of a Big Mac is $5.06; in China, the price is 19.19 yuan. If we divide 19.19 by 6.78 (the yuan/dollar
exchange rate), we get 2,83. Using the Big Mac Index, what does this show?
A. The Chinese yuan is overvalued when compared to the U.S. dollar.
B. The Chinese yuan is undervalued against the U.S. dollar.
C. Beef is less expensive in China than in the United States.
D. The Big Mac is more popular in China than in the United States.
E. The Big Mac is less expensive in the United States than in China.
B. The Chinese yuan is undervalued against the U.S. dollar.
