Question 1

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

Question 2

What is one of the three primary types of foreign exchange transactions?

Options :

A : Hedges

B : Forward transactions

C : Balanced transactions

D : Straddles

Answer: B

Question 3

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 4

One view of globalization claims that human civilization has always had some type of globalization.Which view is it?

Options :

A : The modern institutional view

B : The short-run economic view

C : The long-run historical view

D : The technological convergence view

Answer: C

Question 5

In a monopoly, which statements are likely true? (Choose TWO.)

Options :

A : One seller offers a unique good with no close substitutes

B : There are barriers to entry into the market

C : Firms are price takers

D : Marginal revenue equals price

E : Entry is free in the long run

Answer: A,B