SS Chap 9.1 (E. growth)

What does GDP stand for?

• Gross Domestic Product

• Gross Domestic Produce

• General Domestic Product

• General Domestic Produce

What does GDP of a country refer to?

• It is the total value of goods provided by a country.

• It is the total value of services provided by a country.

• It is the total value of goods and services provided by a country.

• It is the total value of goods and services provided by a country over a period of time.

How is the economic growth of a country defined?

• Economic growth is the increase in the salaries of workers in a country.

• Economic growth is the growth of the service sector in a country.

• Economic growth is the increase in the gross number of products of a country from one period to another.

• Economic growth is the increase in the Gross Domestic Product of a country from one period to another.

Which of the following does not contribute to the increase in Country A's Gross Domestic Product?

• Goods manufactured in factories located within Country A.

• Services provided in various sectors within Country A.

• Goods manufactured in another country’s factories which Country A invested in.

• Tourism services in Country A.

How can a country increase its production of goods and services?

• Free Trade Arena and Foreign Domestic Investment

• Free Trade Arena and Foreign Domestic Investigation

• Free Trade Agreement and Foreign Direct Investment

• Free Trade Agreement and Foreign Direct Investigation

Which of the following is an accurate definition of Foreign Direct Investment (FDI)?

• FDI refers to the investment in a local company by another larger local company.

• When companies from other countries invest directly in local companies, this is known as FDI.

• FDI refers to the investment in a local company by the local government.

• FDI refers to the investment in a local company by a group of local companies.

Which of the following are favourable conditions in a country for FDI? Choose 3 out of the 5 options available.

• Efficient education system

• Growing consumer market (increase in number of people who are potential consumers of a product)

• English as a common language

• Skilled workforce

• Stable government

How does FDI contribute to the growth of the recipient economy? You may select more than one answer.

• improving trade flows, which increase the income of the recipient company

• improving its infrastructure, which attracts more investments

• generating employment through the factories set up

• generating income for the country through tax revenue

What are Free Trade Agreements?

• Treaties between two or more economies where the exchange of goods can be conducted without tariffs.

• Treaties between two or more economies where the exchange of goods and services can be conducted without tariffs.

• Treaties between two or more economies where the exchange of goods and services can be conducted without tariffs.

• Treaties between two or more economies where the exchange of goods and services can be conducted without tariffs or trade barriers.

Which of the following is not an advantage of having FTAs?

• Increase trading between partner countries

• Generate more tax revenue for countries

• Offer better job opportunities for locals

• Large amounts of guaranteed profits for countries