Online Access Free Global-Economics-for-Managers Practice Test

Which mode of entry is an equity-based entry mode?

• A.Licensing
• B.Indirect exports
• C.50/50 joint ventures
• D.Franchising

Which pillar of formal institutions represents the coercive power of governments?

• A.Regulatory
• B.Cultural
• C.Cognitive
• D.Normative

What does the Federal Reserve do to expand aggregate demand? (Choose TWO.)

• A.Decrease the money supply
• B.Increase the money supply
• C.Reduce the quantity of reserves
• D.Increase the foreign exchange rate
• E.Lower the interest rate
• F.Raise mortgage rates

Which statements concerning property rights are true? (Choose TWO.)

• A.Protection of property rights is commonly recognized as a major factor in allowing developing countries to make gains toward economic progress.
• B.Developing countries can achieve economic growth even without securing property rights.
• C.Insecure property rights bode well in global competition where firms benefit from economies of scale and sustained R & D.
• D.The primary purpose of establishing property rights is to provide economic benefit to society as a whole.
• E.Property rights are the legal rights regarding the use of an economic resource and for deriving income and benefits from it.
• F.Securing property rights results in industries that employ little fixed capital and avoid long-term investment.

What are characteristics of a market economy? (Choose TWO.)

• A.It found a near ideal in China and the former Soviet Union during communism.
• B.It is defined by a government taking the authoritative role in the economy.
• C.It was first noted by Adam Smith in The Wealth of Nations in 1776.
• D.Factors of production are government-owned or state-owned.
• E.Supply, demand, and pricing are planned by the government.
• F.It is characterized by the "invisible hand" of market forces.