U3 Quiz M/C

Question 1

Transfer Risk is when government policy may adversely affect currency rates.

Answer 1

True

Question 2

The peak stage, as part of the business cycle is when hiring and spending is declining.

Answer 2

False

Question 3

Hyperinflation occurred in this country in the 1920’s

Answer 3

Germany

Question 4

Credit is spent just like actual cash/money, during a transaction

Answer 4

True

Question 5

The International Monetary Fund was established at Bretton Woods, USA, post WWII.

Answer 5

True

Question 6

Distribution agreements are a form of licensing that turns the ownership of a manufacturing or distribution company over to a local franchisee

Answer 6

false

Question 7

_________________ is when a government exceeds their tax revenue on goods, services or transfer payments, the government has to run a budget deficit.

Answer 7

Budget deficit

Question 8

_______________ 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.

Answer 8

human capital

Question 9

Canada has pegged its dollar, CAD, to the USD (US Dollar)

Answer 9

false

Question 10

A group’s rules or code of ethics is only acknowledged if it is written down

Answer 10

false

Question 11

One drawback of democracy is

Answer 11

Politicians often have a short-term focus

Question 12

Only businesses looking to import or export goods, focuses on demographics

Answer 12

false

Question 13

The GDP Formula is

Answer 13

C+I+G+(Export – Import)

Question 14

PPP and inflation are measured by tracking the prices of the basket of goods

Answer 14

True

Question 15

International currency exchange rates display

Answer 15

How much inflation there is in the country

Question 16

types of political risks

Answer 16

• general political instability
• ownership
• transfer

Question 17

The Bretton Woods system focuses on protecting national economies through tariffs and limiting imports.

Answer 17

false

Question 18

OPEC was formed by

Answer 18

World’s largest oil producers

Question 19

This country would be considered a ‘least-developed’ country

Answer 19

afghanistan

Question 20

After WWII, the US became a superpower because

Answer 20

The UK was declining, they had many military bases and they rebuilt Japan & Europe

Question 21

__________________ the price of a nation’s currency in terms of another currency, it is made up of the domestic currency and a foreign currency

Answer 21

Exchange Rate

Question 22

The Bank of Canada’s (central bank) main functions are to set lending rates and to print money

Answer 22

True

Question 23

wealth is most often measured by income, savings and other assets

Answer 23

True

Question 24

A public warehouse (is)

Answer 24

offers their services to a broader clientele, usually under 30 day contracts

Question 25

Ethical imperialism is that when solving a problem, the decision made should help the greater good, or the greatest amount of people

Answer 25

false

Question 26

Society expects businesses to care for people, the environment and the community. This is known as:

Answer 26

CSR

Question 27

Trading Blocs are regions in which countries agree to support economic growth by opening markets to cross-border trade.

Answer 27

true

Question 28

In order to reduce injuries, Cities in Germany have been installing:

Answer 28

Stop lights in the ground

Question 29

Deleveraging is

Answer 29

paying off debt

Question 30

This type of country is moving away from agriculture and natural resources towards more industrialization and manufacturing.

Answer 30

Developing

Question 31

The EU was created because

Answer 31

To prevent WWIII in Europe

Question 32

The short term debt cycle is drive by

Answer 32

debt

Question 33

________________ is the total value of goods produced and services provided in a country during one year.

Answer 33

GDP

Question 34

Most of the money in the economy is credit & not ‘actual’ cash/money

Answer 34

True

Question 35

This marketing strategy focuses its efforts on wholesalers and retailers

Answer 35

Push

Question 36

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.

Answer 36

true

Question 37

IMF's original aims

Answer 37

- promote international monetary cooperation; - facilitate the expansion and balanced growth of international trade; - promote exchange stability;

Question 38

An economic system is the type of government by which a country is run.

Answer 38

False

Question 39

Economies of scale indicates the more goods that are made or purchased, the higher the price of each unit.

Answer 39

false

Question 40

The IMF’s roles include

Answer 40

a. Lending b. Technical Assistance c. Corporate Responsibility

Question 41

_____________ is the right balance of printing money and paying debt is achieved, balance deflation and inflation

Answer 41

Beautiful deleveraging

Question 42

Estonia is seeing a steady rise in the cost of goods in the country. Economists would say that this is:

Answer 42

inflation

Question 43

A trade deficit is good for a country’s economy when

Answer 43

It is in a recovery

Question 44

Nike and McDonald's are examples of an MNC’s

Answer 44

true

Question 45

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.

Answer 45

Labour costs

Question 46

how a market economy answers the four economic questions:

Answer 46

a. Private property ownership is encouraged c. Profit is the reward for risks taken d. Competition is critical

Question 47

A ____________ activist casually researches causes and world problems

Answer 47

trad socialist

Question 48

Select the country that would be considered a ‘mixed economy’

Answer 48

Canada