CN369 Midterm Exam Questions With
Correct Answers
Select the option that correctly expands the acronym PIGS (per class discussion): -
ANSWER Portugal, Italy, Greece & Spain
An example of "the invisible hand" would be:
You satisfy your hunger by purchasing a really big cheeseburger, and the restaurant
satisfies their need to service your hunger by selling you a big cheeseburger. If the
restaurant raises their price on a big cheeseburger, and you continue to go there (and
bring friends) they have been able to change the market dynamics for big
cheeseburgers. - ANSWER True
Policies that are intended to aid economic growth by privatization, deregulation and
lower taxation are known as ___. - ANSWER supply side policies
The Moody's article was lengthy, but it did provide a nice view of potential risks facing
global economies in the near term. One of those risks would be ___________. - ANSWER
all of the above
From the OEM off highway article, both France and the Phillipines are expected to
experience a 9+% decline in construction activities. - ANSWER False
An example of a relatively closed economy would be _____________ - ANSWER Brazil
Free trade imposes one-way tariffs on goods in order to provide a competitive
environment for the exporters. - ANSWER False
An emerging market (country) will have rapid growth coupled with lower income levels -
ANSWER True
A branch of the World Bank is ____. - ANSWER all of the above
If a resource is scarce, there may not be enough to go around for an extended period of
time...hence scarcity exists - ANSWER True
Established in the 1940s to supervise and regulate the exchange rates between
countries to optimize economic growth - ANSWER IMF
Formed in the 1940s to reconstruct and redevelop nations after WWII. It is an
international organization with the objective of reducing poverty worldwide. They
provide zero to low-interest loans or grants to developing countries. - ANSWER World
,Bank
An international organization that administers rules on international trade. Not only do
they implement rules but they also help negotiate trade agreements, settle trade
disputes, and support developing countries - ANSWER WTO
Sales tax, unit tax, value added tax, goods and services tax) These are tax's collected by
an intermediary such as a retail store from the person who bears the ultimate economic
burden such as the consumer. - ANSWER Indirect taxation
Unobservable market force that helps the demand and supply of goods in a free market
to reach equilibrium (supply and demand are balanced.) It is the natural force that self
regulates the market economy. This concept explains that individual decision in a
market economy will make them better off as a whole. - ANSWER Invisible hand
The occurrence of an individual consuming more than their fair share of a common
resource that is available to everyone. This specifically occurs in situations where the
consumption cannot be limited along with the number of people consuming it. This can
cause the general public, who are putting in the work to achieve the availability of a
common good, to lower performance levels due to some getting the common good for
less or no amount of effort. - ANSWER Free riding
Procedure for estimating all costs involved and possible profits to be derived from a
business opportunity or proposal. The factors it has in today's economic climate is that
it can be equivalent money value of the benefits and cost to communities for projects
whether they are worthwhile for the money to be spent. Projects involved in this analysis
may be dams and highways, and also can go into training systems and healthcare. It is
important to make sure that the benefits reap more than the cost, so it is not a failed
project and losing money in the process. - ANSWER Cost benefit analysis
A country that has some characteristics of a developed market, but does not satisfy
standards to be termed a developed market. The characteristics are lower than average
per capita income, they don't have rapid change or good foreign direct investment. -
ANSWER emerging market
Tax which is paid by an individual or organization directly to the government. - ANSWER
Direct taxation
An agreement between a company and a supplier that is intended to benefit the
supplier. The company pays that supplier a reasonable price for their goods or services.
- ANSWER Fair trade
Based upon the OEM off highway article on Global construction markets, the South and
Southeast Asia markets are expected to__________. - ANSWER contract by more than 4%
in 2020
The minimum wage is:____. - ANSWER The lowest wage (by law) paid to an employee for
showing up to work
, A grouping acronym that refers to emerging markets in the countries of: - ANSWER
BRIC - Brazil, Russia, India & China
A good that is produced in one country that is sold and sent to a different country. -
ANSWER Export
It takes in the value of all goods and services supplied by the country during one year
and determines the worth, or how much the country is making during that year. -
ANSWER GDP
Agreement between countries or states that imposes no tariffs or blockages on those
trades. Things are traded at their market value and nothing extra - ANSWER Free trade
The purpose is to impose structure where there would be madness in an unwieldy
system - ANSWER Bureaucracy
The union of oil producing countries that regulate the amount of oil each country is able
to produce. - ANSWER OPEC
A country that has some characteristics of a developed market, but does not satisfy
standards to be termed a developed market. Some characteristics are lower than
average per capita income, they don't have rapid change or good foreign direct
investment. - ANSWER Emerging Market
A financial gain between the amount earned and the amount spent in buying, operating,
or producing something. - ANSWER Profit
The lowest wage permitted by law - ANSWER Minimum Wage
Government policies which seek to increase the productivity and efficiency of the
economy. The goals of this policy is to lower unemployment, lower inflation, and
increase economic growth. - ANSWER Supply Side Policies
A country's Gross National Product (GNP) is gauged by its dollar amount of goods and
services produced in a calendar year. Assuming you / your country also invests in
foreign countries, the effect on your GNP is positive if: - ANSWER the foreign return is
greater than the investment
Correct Answers
Select the option that correctly expands the acronym PIGS (per class discussion): -
ANSWER Portugal, Italy, Greece & Spain
An example of "the invisible hand" would be:
You satisfy your hunger by purchasing a really big cheeseburger, and the restaurant
satisfies their need to service your hunger by selling you a big cheeseburger. If the
restaurant raises their price on a big cheeseburger, and you continue to go there (and
bring friends) they have been able to change the market dynamics for big
cheeseburgers. - ANSWER True
Policies that are intended to aid economic growth by privatization, deregulation and
lower taxation are known as ___. - ANSWER supply side policies
The Moody's article was lengthy, but it did provide a nice view of potential risks facing
global economies in the near term. One of those risks would be ___________. - ANSWER
all of the above
From the OEM off highway article, both France and the Phillipines are expected to
experience a 9+% decline in construction activities. - ANSWER False
An example of a relatively closed economy would be _____________ - ANSWER Brazil
Free trade imposes one-way tariffs on goods in order to provide a competitive
environment for the exporters. - ANSWER False
An emerging market (country) will have rapid growth coupled with lower income levels -
ANSWER True
A branch of the World Bank is ____. - ANSWER all of the above
If a resource is scarce, there may not be enough to go around for an extended period of
time...hence scarcity exists - ANSWER True
Established in the 1940s to supervise and regulate the exchange rates between
countries to optimize economic growth - ANSWER IMF
Formed in the 1940s to reconstruct and redevelop nations after WWII. It is an
international organization with the objective of reducing poverty worldwide. They
provide zero to low-interest loans or grants to developing countries. - ANSWER World
,Bank
An international organization that administers rules on international trade. Not only do
they implement rules but they also help negotiate trade agreements, settle trade
disputes, and support developing countries - ANSWER WTO
Sales tax, unit tax, value added tax, goods and services tax) These are tax's collected by
an intermediary such as a retail store from the person who bears the ultimate economic
burden such as the consumer. - ANSWER Indirect taxation
Unobservable market force that helps the demand and supply of goods in a free market
to reach equilibrium (supply and demand are balanced.) It is the natural force that self
regulates the market economy. This concept explains that individual decision in a
market economy will make them better off as a whole. - ANSWER Invisible hand
The occurrence of an individual consuming more than their fair share of a common
resource that is available to everyone. This specifically occurs in situations where the
consumption cannot be limited along with the number of people consuming it. This can
cause the general public, who are putting in the work to achieve the availability of a
common good, to lower performance levels due to some getting the common good for
less or no amount of effort. - ANSWER Free riding
Procedure for estimating all costs involved and possible profits to be derived from a
business opportunity or proposal. The factors it has in today's economic climate is that
it can be equivalent money value of the benefits and cost to communities for projects
whether they are worthwhile for the money to be spent. Projects involved in this analysis
may be dams and highways, and also can go into training systems and healthcare. It is
important to make sure that the benefits reap more than the cost, so it is not a failed
project and losing money in the process. - ANSWER Cost benefit analysis
A country that has some characteristics of a developed market, but does not satisfy
standards to be termed a developed market. The characteristics are lower than average
per capita income, they don't have rapid change or good foreign direct investment. -
ANSWER emerging market
Tax which is paid by an individual or organization directly to the government. - ANSWER
Direct taxation
An agreement between a company and a supplier that is intended to benefit the
supplier. The company pays that supplier a reasonable price for their goods or services.
- ANSWER Fair trade
Based upon the OEM off highway article on Global construction markets, the South and
Southeast Asia markets are expected to__________. - ANSWER contract by more than 4%
in 2020
The minimum wage is:____. - ANSWER The lowest wage (by law) paid to an employee for
showing up to work
, A grouping acronym that refers to emerging markets in the countries of: - ANSWER
BRIC - Brazil, Russia, India & China
A good that is produced in one country that is sold and sent to a different country. -
ANSWER Export
It takes in the value of all goods and services supplied by the country during one year
and determines the worth, or how much the country is making during that year. -
ANSWER GDP
Agreement between countries or states that imposes no tariffs or blockages on those
trades. Things are traded at their market value and nothing extra - ANSWER Free trade
The purpose is to impose structure where there would be madness in an unwieldy
system - ANSWER Bureaucracy
The union of oil producing countries that regulate the amount of oil each country is able
to produce. - ANSWER OPEC
A country that has some characteristics of a developed market, but does not satisfy
standards to be termed a developed market. Some characteristics are lower than
average per capita income, they don't have rapid change or good foreign direct
investment. - ANSWER Emerging Market
A financial gain between the amount earned and the amount spent in buying, operating,
or producing something. - ANSWER Profit
The lowest wage permitted by law - ANSWER Minimum Wage
Government policies which seek to increase the productivity and efficiency of the
economy. The goals of this policy is to lower unemployment, lower inflation, and
increase economic growth. - ANSWER Supply Side Policies
A country's Gross National Product (GNP) is gauged by its dollar amount of goods and
services produced in a calendar year. Assuming you / your country also invests in
foreign countries, the effect on your GNP is positive if: - ANSWER the foreign return is
greater than the investment
