Unit Test — Unit test Answers

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An economy where the government sets prices, determines what and how many items will be produced, and assigns jobs to all citizens is called a __________ economy.

A
command
B
traditional
C
barter
D
market
2
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Civil society organizations focus efforts on __________.

A
stabilizing a nation's economy by reducing inflation
B
finding long-term solutions to poverty and creating a greater quality of life for all people
C
improving trade relations between nations
D
providing loans to large businesses so they can hire more people
3

What is a major difference between formal and informal economic sectors?

A
the dress code required of workers
B
whether jobs deal with raw materials or finished products
C
government regulation and oversight
D
whether or not the nation has a comparative advantage
4

Read the passage below and answer the question that follows. Among the Maasai, a tribal culture in southwestern Kenya, an American doctor introduced a hand-washing program to help the incidence of childhood diarrhea, which can cause death if left untreated. The tribe's women began to sell homemade jewelry so they could afford to purchase soap. Which of the following development needs is met by the NGO initiative above?

A
the reduction of widespread disease
B
the encouragement of economic growth by international investment into a society
C
an increase in the literacy rate
D
a reduction in the population growth rate
5

Which of the following statements about pay and promotion equality is false?

A
In all societies worldwide, men make more money than women for doing the same work.
B
The number of women in high-tech professions continues to lag.
C
The pay gap is closing in the developed world.
D
Women are as likely as men to hold senior management positions.
6

According to Wallerstein's world systems theory, which countries have the highest levels of economic development?

A
core countries
B
semi-periphery countries
C
periphery countries
D
all countries inside the Brandt line
7

Which of the following is not a reason why infectious diseases like malaria and HIV/AIDS often hamper economic development?

A
Life expectancy begins to rise.
B
Caregivers lose time at work.
C
More tax dollars are shifted to health care.
D
People have difficulty working and earning income.
8

The primary mission of the World Bank today is to __________.

A
set international exchange rates
B
reduce poverty around the globe
C
make short-term loans to nations
D
rebuild nations after wars or natural disasters
9

Which of the following statements about Sweden’s efforts to eliminate gender inequality is false?

A
Antidiscrimination laws protect the rights of women.
B
Swedish women earn slightly less than American women do, in comparison to men’s salaries in the same profession.
C
Women get 16 months paid maternity leave.
D
Women make up about half of Sweden’s parliament and hold more than half of all government management positions.
10

How does gross domestic product (GDP) differ from gross national income (GNI)?

A
GDP counts the number of citizens in a country, while GNI counts the number of citizens abroad.
B
GDP measures how happy people are in a country, while GNI measures how happy they are internationally.
C
GDP is used by NASA to measure eroding coastlines, while GNI is used by the FBI to monitor criminal activity across borders.
D
GDP measures the money that a country makes in its own land, while GNI measures the money it makes in other countries and at home.
11

How does an island of development promote economic development?

A
Islands of development contribute to mining industries because they continue to form mountains.
B
Islands of development have been ruled by dictators since the 1950s as part of an economic experiment.
C
Islands of development promote international development by creating new islands.
D
Islands of development stimulate job creation in underdeveloped nations.
12

In a __________ economy, most businesses are privately owned, but the government regulates utilities, builds roads and bridges, and provides public services, such as bus transportation.

A
market
B
planned
C
mixed
D
traditional
13

Oxfam America, Doctors Without Borders, and the Red Cross are examples of __________.

A
IRBDs
B
IDAs
C
NGOs
D
IMFs
14

Read the statement below and answer the question that follows.Relationships with family, friends, and community far outweigh money or things. Which of the following indicators would most likely use the statement above as a justification for its measurements?

A
Walt Rostow's Modernization Model
B
the Genuine Progress Indicator
C
the Gross Happiness Index
D
the Human Development Index
15

Which barrier to economic development is shown in the following examples? I. the high rate of HIV infection in underdeveloped nations II. the use of children as soldiers in Uganda’s army in the early 2000s III. low literacy rates in underdeveloped nations with limited exposure to adequate education

A
foreign debt
B
political instability
C
widespread disease
D
low levels of social welfare
16

In general, countries that were European colonies in the 1940s have __________.

A
lower-than-average GDP and lower-than-average HDI
B
higher-than-average GDP and lower-than-average HDI
C
higher-than-average GDP and higher-than-average HDI
D
lower-than-average GDP and higher-than-average HDI
17

Which of the following is not a role of the IMF?

A
helping reduce poverty worldwide
B
tracking global economic performance and trends
C
helping countries manage their economies
D
providing loans to countries in need of financial assistance
18

Which of the following statements does not describe microcredit loans?

A
Microcredit loans are most common in poor, developing countries.
B
The UN estimates that women make up 76% of microcredit customers.
C
Microcredit loans are interest-free.
D
NGOs around the world currently use microcredit loans.
19

In a low-income household in the developed world, more than 30% of a woman’s income typically goes toward __________.

A
transportation costs
B
child care
C
clothing and incidentals
D
the repayment of educational loans
20

The __________ sector of an economy is involved in the acquisition of raw materials.

A
primary
B
secondary
C
tertiary
D
quinary

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