U3 Quiz M/C Flashcards
Transfer Risk is when government policy may adversely affect currency rates.
True
The peak stage, as part of the business cycle is when hiring and spending is declining.
False
Hyperinflation occurred in this country in the 1920’s
Germany
Credit is spent just like actual cash/money, during a transaction
True
The International Monetary Fund was established at Bretton Woods, USA, post WWII.
True
Distribution agreements are a form of licensing that turns the ownership of a manufacturing or distribution company over to a local franchisee
false
_________________ is when a government exceeds their tax revenue on goods, services or transfer payments, the government has to run a budget deficit.
Budget deficit
_______________ the the skills, knowledge, and experiences possessed by an individual or population, viewed in terms of their value or cost to an organization or country.
human capital
Canada has pegged its dollar, CAD, to the USD (US Dollar)
false
A group’s rules or code of ethics is only acknowledged if it is written down
false
One drawback of democracy is
Politicians often have a short-term focus
Only businesses looking to import or export goods, focuses on demographics
false
The GDP Formula is
C+I+G+(Export – Import)
PPP and inflation are measured by tracking the prices of the basket of goods
True
International currency exchange rates display
How much inflation there is in the country
types of political risks
- general political instability
- ownership
- transfer
The Bretton Woods system focuses on protecting national economies through tariffs and limiting imports.
false
OPEC was formed by
World’s largest oil producers
This country would be considered a ‘least-developed’ country
afghanistan
After WWII, the US became a superpower because
The UK was declining, they had many military bases and they rebuilt Japan & Europe
__________________ the price of a nation’s currency in terms of another currency, it is made up of the domestic currency and a foreign currency
Exchange Rate
The Bank of Canada’s (central bank) main functions are to set lending rates and to print money
True
wealth is most often measured by income, savings and other assets
True
A public warehouse (is)
offers their services to a broader clientele, usually under 30 day contracts
Ethical imperialism is that when solving a problem, the decision made should help the greater good, or the greatest amount of people
false
Society expects businesses to care for people, the environment and the community. This is known as:
CSR
Trading Blocs are regions in which countries agree to support economic growth by opening markets to cross-border trade.
true
In order to reduce injuries, Cities in Germany have been installing:
Stop lights in the ground
Deleveraging is
paying off debt
This type of country is moving away from agriculture and natural resources towards more industrialization and manufacturing.
Developing
The EU was created because
To prevent WWIII in Europe
The short term debt cycle is drive by
debt
________________ is the total value of goods produced and services provided in a country during one year.
GDP
Most of the money in the economy is credit & not ‘actual’ cash/money
True
This marketing strategy focuses its efforts on wholesalers and retailers
Push
Some African nations are still struggling to pay off large debts caused from loans they took out in the 1960’s, originally leant at very cheap rates.
true
IMF’s original aims
- promote international monetary cooperation;
- facilitate the expansion and balanced growth of international trade;
- promote exchange stability;
An economic system is the type of government by which a country is run.
False
Economies of scale indicates the more goods that are made or purchased, the higher the price of each unit.
false
The IMF’s roles include
a. Lending
b. Technical Assistance
c. Corporate Responsibility
_____________ is the right balance of printing money and paying debt is achieved, balance deflation and inflation
Beautiful deleveraging
Estonia is seeing a steady rise in the cost of goods in the country. Economists would say that this is:
inflation
A trade deficit is good for a country’s economy when
It is in a recovery
Nike and McDonald’s are examples of an MNC’s
true
Companies that use a centralized market entry strategy often find their prices in foreign markets are driven upwards. ONE areas that help to increase costs that impact the price of the product.
Labour costs
how a market economy answers the four economic questions:
a. Private property ownership is encouraged
c. Profit is the reward for risks taken
d. Competition is critical
A ____________ activist casually researches causes and world problems
trad socialist
Select the country that would be considered a ‘mixed economy’
Canada
