PMK TEST CHAP 1 AND 2 T or F

Question 1

Competitiveness does not relate to the value and quantity of output offered or the inputs needed for profitability.

Answer 1

False

Question 2

Multilateral agreements are powerful and cover larger geographic areas.

Answer 2

True

Question 3

Unilateral trade agreements involve mutual negotiation and benefit all parties equally.

Answer 3

False

Question 4

Trade barriers are government-induced restrictions on international trade.

Answer 4

True

Question 5

Components of GDP include personal consumption expenditures, business investments, government spending, exports and imports.

Answer 5

True

Question 6

Increased competition through trade agreements reduces product quality.

Answer 6

False

Question 7

trade agreements determine the tariffs and duties that countries impose on imports and exports.

Answer 7

True

Question 8

An Economic Union adopts a common currency among its members

Answer 8

True

Question 8

Foreign direct investment means investment in local transportation systems for export purposes.

Answer 8

False

Question 9

Exports include anything shipped from a domestic company to its foreign affiliate or branch.

Answer 9

True