Question 1

What does the term resource mobility describe?

Options :

A : The idea that market forces should determine how much to trade with little or no governmentintervention

B : The assumption that a resource removed from one industry can be moved to another

C : An economic condition in which a nation exports more than it imports

D : The idea that governments should actively defend domestic industries from imports and vigorouslypromote the export of resources

Answer: B

Question 2

What are costs to home countries of foreign direct investment (FDI)? (Choose TWO.)

Options :

A : Job loss

B : Reduced standard of living

C : Cultural disintegration

D : Capital outflow

E : Loss of sovereignty

F : Loss of intellectual property

Answer: A,D

Question 3

When confronting MNEs, the extender strategy centers on what?

Options :

A : Leveraging homegrown competencies abroad

B : Cooperating through joint ventures (JVs) with MNEs and sell-offs to MNEs

C : Leveraging local assets in areas in which MNEs are weak

D : Engaging in rapid learning and then expanding overseas

Answer: A

Question 4

Point A is on the same indifference curve as Point B. What can be said about the points?

Options :

A : Point B represents a bundle that costs more than Point A.

B : The consumer’s preference for bundle A is the same as for bundle B.

C : The consumer prefers bundle A over bundle B.

D : Point A represents a bundle that costs more than Point B.

Answer: B

Question 5

Which system has elements of a market economy and a command economy?

Options :

A : Fair economy

B : Market-command economy

C : Mixed economy

D : Compromise economy

Answer: C