Economics Practice Quiz 87

Q1.Which regions were particularly affected by periodic debt crises, lower incomes, and increased poverty in the developing world after the mid-1970s?

A. East Asia and Southeast Asia B. North America and Western Europe C. Africa and Latin America D. Oceania and the Middle East

Q2.When did unemployment begin rising in the industrial world, remaining high until the early 1990s?

A. Early 1960s B. Late 1960s C. Mid-1970s D. Early 1980s

Q3.What was a key factor that made countries like China attractive destinations for investment by foreign MNCs competing to capture world markets?

A. High tariffs on imported goods B. Strong labor unions and high wages C. Low-cost structure, primarily low wages D. Strict environmental regulations

Q4.What is the primary function of exchange rates?

A. To regulate international trade agreements B. To link national currencies for purposes of international trade C. To determine the value of gold reserves D. To control inflation in developing countries

Q5.In a system of fixed exchange rates, what role do governments play?

A. They allow rates to fluctuate freely based on market demand B. They intervene to prevent movements in exchange rates C. They only monitor exchange rates without interference D. They set exchange rates based on a basket of commodities

Q6.The text asks for the meaning of which significant international agreement?

A. The Kyoto Protocol. B. The Bretton Woods Agreement. C. The Treaty of Versailles. D. The Geneva Conventions.

Q7.The text suggests that the G-77 countries can be seen as a reaction to the activities of which entities?

A. The United Nations Security Council. B. The World Trade Organization. C. The Bretton Woods twins. D. The European Central Bank.

Q8.Where did MNCs decide to relocate their production?

A. African countries. B. European countries. C. Asian countries. D. South American countries.

Q9.What contributed to the growing demand for goods during the period of proto-industrialisation?

A. Decline of world trade and loss of colonies B. Expansion of world trade and acquisition of colonies C. Increased production within towns by guilds D. Restriction of new merchants in the countryside

Q10.Which of the following was a reason poor peasants and artisans in the countryside eagerly agreed to work for merchants?

A. They had large plots of land providing ample work. B. Open fields were disappearing and commons were being enclosed. C. They wanted to move to urban centers for better opportunities. D. They were forced by local rulers to work for merchants.

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Economics Practice Quiz 87