International Trade and Globalization Quiz

What is the process of growing interdependence between countries known as?

• Industrialization

• Globalization

• Urbanization

• Localization

Why does Australia engage in trading relationships with countries all over the world?

• To reduce its population

• To produce all goods and services domestically

• Because its economic system cannot produce all the goods and services it desires

• To isolate its economy

What is the main reason advanced economies rely on trade?

• To decrease global interdependence

• To generate economic growth

• To limit the flow of money

• To reduce household consumption

Who are the major participants in the Australian economy?

• Only the household sector

• The household sector, the business sector, the financial sector, and the government sector

• The business sector and the government sector only

• Only the financial sector

What is the term used by economists to refer to the total of all consumers in the economy?

• Business sector

• Financial sector

• Household sector

• Government sector

What are the four categories of resources used by businesses?

• Land, labour, capital, enterprise

• Money, time, energy, effort

• Goods, services, products, materials

• People, technology, information, skills

What is consumer or household demand?

• The amount of goods or services businesses want to sell

• The amount of goods or services that consumers are willing and able to purchase at a particular point in time

• The total production capacity of a business

• The financial resources available to a household

What does the term 'land' refer to in economics?

• Human skills and effort

• All equipment used in production

• Raw materials and natural resources

• The ability to recognize demand

Which of the following is an example of 'capital' in a supermarket?

• A farmer's plough

• A builder's physical effort

• Shelving for storing goods

• The ability to organize resources

What is the role of 'enterprise' in the production process?

• Providing physical effort in factories

• Recognizing demand and organizing resources

• Supplying raw materials for production

• Using tools and machinery in production