#1
Which of the following is not a characteristic of globalization?
Decreased flow of goods and services across borders
ExplanationGlobalization entails increased flow of goods and services across borders.
#2
Which of the following is a characteristic of a high-income country?
High literacy rates
ExplanationHigh literacy rates characterize high-income countries.
#3
Which of the following is an example of a non-renewable resource?
Coal
ExplanationCoal is an example of a non-renewable resource.
#4
Which organization is responsible for setting international standards for trade, including the resolution of disputes between member countries?
World Trade Organization (WTO)
ExplanationThe WTO sets international trade standards and resolves disputes between member countries.
#5
Which of the following is a characteristic of a command economy?
Government control of resources
ExplanationGovernment control of resources is a characteristic of a command economy.
#6
Which theory suggests that economic development spreads outwards from core areas to peripheral areas?
World Systems Theory
ExplanationThe World Systems Theory posits economic development radiates from core to peripheral areas.
#7
What is the primary driving force behind economic globalization?
Advancements in communication and technology
ExplanationAdvancements in communication and technology propel economic globalization.
#8
Which theory emphasizes the idea that economic development in some countries can hinder development in others?
Dependency Theory
ExplanationDependency Theory underscores how development in some nations may impede progress in others.
#9
Which region is known for its significant role in the global financial system, hosting institutions like the International Monetary Fund (IMF) and the World Bank?
North America
ExplanationNorth America plays a significant role in the global financial system, hosting institutions like the IMF and the World Bank.
#10
Which concept refers to the process of goods and services moving across national borders?
Globalization
ExplanationGlobalization entails the movement of goods and services across national borders.
#11
Which of the following is NOT an indicator used to measure economic development?
Consumer Price Index (CPI)
ExplanationThe Consumer Price Index (CPI) is not used to measure economic development.
#12
Which region is known for its high concentration of maquiladoras, which are factories that import materials and equipment on a duty-free and tariff-free basis for assembly or manufacturing?
North America
ExplanationNorth America boasts a high concentration of maquiladoras.
#13
According to the Porter's Diamond model, which of the following factors is not part of the competitive advantage of nations?
Exchange rate stability
ExplanationExchange rate stability is not a factor in Porter's Diamond model for competitive advantage.
#14
What is the term used to describe the process of outsourcing tasks to a third-party country where labor costs are cheaper?
Offshoring
ExplanationOffshoring refers to outsourcing tasks to countries with cheaper labor costs.
#15
According to the 'Flying Geese Paradigm,' which country typically serves as the lead in industrial development while others follow?
Japan
ExplanationJapan typically leads in industrial development according to the Flying Geese Paradigm.
#16
Which term describes a situation where a country specializes in the production of a particular good or service to gain efficiency?
Comparative advantage
ExplanationComparative advantage describes specialization for efficiency in production.
#17
Which of the following is NOT one of the stages in Rostow's Stages of Economic Growth?
Industrial revolution
ExplanationIndustrial revolution is not a stage in Rostow's Stages of Economic Growth.