Economics & Personal Finance Review

Which statement most accurately describes the effects of today's global interdependency?

• American labor and manufacturing sectors have greatly benefited.

• Demand for local resources has negatively affected the environment.

• There is less competition in the world.

• The gap between the rich and poor countries has decreased.

Which of these ideas best describes a quota?

• A limit placed by the federal government on certain goods.

• A tax on exports

• Moving of manufacturing plants outside the United States

• When a nation can make a product more efficient than other nations

How would American consumers most likely react to a large increase on tariffs on luxury cars from Japan?

• U.S. consumers would continue to buy luxury cars from Japan.

• U.S. consumers would buy more domestic or European luxury cars.

• U.S. consumers who usually purchase Japanese luxury cars would demand greater fuel economy.

• U.S. consumers who usually purchase Japanese luxury cars would buy non-luxury Japanese cars.

Which of the following least explains an industry that has been affected by outsourcing in the United States?

• Food products

• Furniture

• Textiles

• Electronics

When the American dollar increases in value, what happens to the price of American imports in a foreign country?

• The price will decrease

• The price will increase

• The price will stay the same.

When a nation can make a product cheaper than any other nation, they have created a(n):

• outsourcing

• comparative advantage

• global interdependency

• quota

Which of these statements best explains why many companies use outsourcing?

• It allows the company to make less money.

• It allows the company to be a global leader for the environment.

• It allows the company to save money on wages and taxes.

• It allows the company to spend money on new technology.

Sending goods to another country to sell is called a(n):

• export

• import

• outsourcing

• globalization

The development of a worldwide economy where resources flow fairly freely across borders.

• globalization

• gross domestic product

• economy

• economic independence

What was the trade agreement negotiated by the governments of Canada, Mexico, and the United States that took effect in 1989?

• ASEAN

• European Union

• the United Nations

• NAFTA