Question 1

China is the first BRICS nation in the upper-middle-income category with a GNI per capita income of $8,260 in 2016.

Accepted Answer

A) True 
 B)False  False

Question 2

Myanmar,a low-income country in Southeast Asia with a population of 52 million people,can be considered an emerging market.

Accepted Answer

A) True 
 B)False  True

Question 3

Which one of the following nations falls in the lower-middle-income category?

Accepted Answer

A)  Burundi
B)  Bangladesh
C)  India
D)  Venezuela
E)  none of the above C

Question 4

The world economy has changed profoundly since the end of the World War II.Perhaps the most fundamental changes that took place include all of the following except:

Accepted Answer

A)  global competitors have steadily displaced local competitors.
B)  the integration of the world economy has increased significantly.
C)  economic integration is particularly striking in the European Union.
D)  protectionism and nationalism have rapidly increased economic integration.
E)  integration of the world economy is visible in NAFTA (North American Free Trade Agreement) .

Question 5

The United Nations designates 50 countries in the bottom ranks of the low-income category named as:

Accepted Answer

A)  low-income countries.
B)  lower-middle-income countries.
C)  BRIC countries.
D)  developing countries.
E)  LDCs (least-developed countries) .

Question 6

In Sweden,where the government controls two-thirds of all expenditures,resource allocation is more "market" oriented than "command" oriented.

Accepted Answer

A) True 
 B)False

Question 7

The big emerging markets (BEMs),include:

Accepted Answer

A)  Japan.
B)  Sweden.
C)  Vietnam.
D)  Pakistan.
E)  Brazil.

Question 8

Approximately 25 percent of the world population is included in the low-income countries category as per the World Bank classification system.

Accepted Answer

A) True 
 B)False

Question 9

In centrally planned socialism economic systems,the state allocates resources,whereas production resources are privately owned.

Accepted Answer

A) True 
 B)False

Question 10

When a company conducts business across boundaries in countries with different currencies,it is thrust into the turbulent world of exchange risk.

Accepted Answer

A) True 
 B)False

Question 11

Traditionally economists identified four main types of economic systems.However,due to globalization it is harder to categorize the systems this narrowly.What will be more robust descriptive criteria that can be used for classification?

Accepted Answer

The answer of Traditionally economists identified four main types of...

Question 12

Myanmar people are very similar to Japanese in some ways.

Accepted Answer

A) True 
 B)False

Question 13

According to the authors of the Harvard Business Review article,"Serving the World's Poor,Profitably," which of the following is a mistaken assumption that global companies might have about the BOP (bottom of the pyramid)?

Accepted Answer

A)  The poor have no money.
B)  The poor are too concerned with fulfilling basic needs to "waste" money on nonessential goods.
C)  People in BOP markets will be criticized for exploiting the poor.
D)  People in BOP markets cannot use advanced technology.
E)  All of the above are mistaken assumptions discussed by the authors.

Question 14

Traditionally economists identified main types of economic systems,which include all of the following except:

Accepted Answer

A)  market capitalism.
B)  market socialism.
C)  centrally planned socialism.
D)  centrally planned capitalism.
E)  centrally planned nationalism.

Question 15

With per capita income of less than $700,Ethiopians enjoyed more than a decade of double-digit economic expansion due to all of the following reasons,except:

Accepted Answer

A)  foreign investment from China helped in building several industrial parks.
B)  garment workers were trained in Hong Kong by J Crew and Burberry.
C)  Ethiopia provides duty-free access to the key U.S.markets.
D)  the country has a sufficient available workforce with low wage levels.
E)  the country is sufficiently near a seaport for exports.

Question 16

The United States' growing trade deficit reflects a number of factors,which exclude:

Accepted Answer

A)  increased imports from China.
B)  a seemingly insatiable consumer demand for imported goods.
C)  the enormous cost of military operations in the Middle East.
D)  the services trade surplus.
E)  record goods sales to developing countries.

Question 17

For decades,the economies of China,the former Soviet Union,and India functioned according to the tenets of:

Accepted Answer

A)  market capitalism.
B)  market socialism.
C)  centrally planned socialism.
D)  centrally planned capitalism.
E)  market capitalism and socialistic capitalism.

Question 18

The general characteristics shared by low-income countries do not include:

Accepted Answer

A)  high birth rates.
B)  low literacy rates.
C)  concentration in Africa south of the Sahara.
D)  heavy reliance on foreign aid.
E)  lack of genuine market opportunities.

Question 19

The top global merchandise exporter is:

Accepted Answer

A)  China.
B)  Germany.
C)  the United States.
D)  Japan.
E)  Korea.

Question 20

With a 2016 GNI per capita of $1,680,India has transitioned out of the low-income category and is now classified as an upper-middle-income country.

Accepted Answer

A) True 
 B)False

Exam 2: The Global Economic Environment

China is the first BRICS nation in the upper-middle-income category with a GNI per capita income of $8,260 in 2016.

Myanmar,a low-income country in Southeast Asia with a population of 52 million people,can be considered an emerging market.

Which one of the following nations falls in the lower-middle-income category?

The world economy has changed profoundly since the end of the World War II.Perhaps the most fundamental changes that took place include all of the following except:

The United Nations designates 50 countries in the bottom ranks of the low-income category named as:

In Sweden,where the government controls two-thirds of all expenditures,resource allocation is more "market" oriented than "command" oriented.

The big emerging markets (BEMs) ,include:

Approximately 25 percent of the world population is included in the low-income countries category as per the World Bank classification system.

In centrally planned socialism economic systems,the state allocates resources,whereas production resources are privately owned.

When a company conducts business across boundaries in countries with different currencies,it is thrust into the turbulent world of exchange risk.

Traditionally economists identified four main types of economic systems.However,due to globalization it is harder to categorize the systems this narrowly.What will be more robust descriptive criteria that can be used for classification?

Myanmar people are very similar to Japanese in some ways.

According to the authors of the Harvard Business Review article,"Serving the World's Poor,Profitably," which of the following is a mistaken assumption that global companies might have about the BOP (bottom of the pyramid) ?

Traditionally economists identified main types of economic systems,which include all of the following except:

With per capita income of less than $700,Ethiopians enjoyed more than a decade of double-digit economic expansion due to all of the following reasons,except:

The United States' growing trade deficit reflects a number of factors,which exclude:

For decades,the economies of China,the former Soviet Union,and India functioned according to the tenets of:

The general characteristics shared by low-income countries do not include:

The top global merchandise exporter is:

With a 2016 GNI per capita of $1,680,India has transitioned out of the low-income category and is now classified as an upper-middle-income country.