FULL GED PRACTICE TEST
Which of the following is not a necessary condition for a perfect
market?
A. The absence of regulation
B. Equal access to technology
C. All actors have total information about the market
D. No barrier to entry or exit - ANSWERS-A
Which economic system states that the wealth of a nation depends on
its total available capital?
A. Capitalism
B. Mercantilism
C. Communism
D. Feudalism - ANSWERS-B
How do economists quantify the possibility that invested money could
have been used for another purpose later on?
A. Risk
B. Cost of money
C. Inflation
D. Opportunity cost - ANSWERS-D
Why does the marginal cost of most manufactured goods decrease?
,A. The overhead is spread over more units
B. The factory becomes more efficient
C. New workers will accept lower wages
D. To account for reduced marginal utility - ANSWERS-A
What is a necessary prerequisite for industrialization?
A. Universal education
B. A democratic government
C. A food surplus
D. The protection of human rights - ANSWERS-C
An investment made by a company or entity based in one country,
into a company or entity based in another country is a Foreign Direct
Investment. These FDI's differ substantially from indirect investments
such as portfolio flows, wherein overseas institutions invest in
equities listed on a nation's stock exchange. Entities making direct
investments typically have a significant degree of influence and
control over the company into which the investment is made. Open
economies with skilled workforces and good growth prospects tend to
attract larger amounts of foreign direct investment than closed, highly
regulated economies. The standard of living in the recipient country is
also improved by higher tax revenue from the company that received
the foreign direct investment. However, sometimes countries
neutralize that increased revenue by offering tax incentives to attract
the FDI in the first place.
Most often, Open Econ - ANSWERS-E
, An investment made by a company or entity based in one country,
into a company or entity based in another country is a Foreign Direct
Investment. These FDI's differ substantially from indirect investments
such as portfolio flows, wherein overseas institutions invest in
equities listed on a nation's stock exchange. Entities making direct
investments typically have a significant degree of influence and
control over the company into which the investment is made. Open
economies with skilled workforces and good growth prospects tend to
attract larger amounts of foreign direct investment than closed, highly
regulated economies. The standard of living in the recipient country is
also improved by higher tax revenue from the company that received
the foreign direct investment. However, sometimes countries
neutralize that increased revenue by offering tax incentives to attract
the FDI in the first place.
Overseas institutions - ANSWERS-C
His ____________ appearance made many feel comfortable in his
moral judgments.
A. Brittle
B. Sagacious
C. Prolific
D. Repressive
E. Destitute - ANSWERS-B
He can't do _____________, but he can provide consistent and solid
performance.
Which of the following is not a necessary condition for a perfect
market?
A. The absence of regulation
B. Equal access to technology
C. All actors have total information about the market
D. No barrier to entry or exit - ANSWERS-A
Which economic system states that the wealth of a nation depends on
its total available capital?
A. Capitalism
B. Mercantilism
C. Communism
D. Feudalism - ANSWERS-B
How do economists quantify the possibility that invested money could
have been used for another purpose later on?
A. Risk
B. Cost of money
C. Inflation
D. Opportunity cost - ANSWERS-D
Why does the marginal cost of most manufactured goods decrease?
,A. The overhead is spread over more units
B. The factory becomes more efficient
C. New workers will accept lower wages
D. To account for reduced marginal utility - ANSWERS-A
What is a necessary prerequisite for industrialization?
A. Universal education
B. A democratic government
C. A food surplus
D. The protection of human rights - ANSWERS-C
An investment made by a company or entity based in one country,
into a company or entity based in another country is a Foreign Direct
Investment. These FDI's differ substantially from indirect investments
such as portfolio flows, wherein overseas institutions invest in
equities listed on a nation's stock exchange. Entities making direct
investments typically have a significant degree of influence and
control over the company into which the investment is made. Open
economies with skilled workforces and good growth prospects tend to
attract larger amounts of foreign direct investment than closed, highly
regulated economies. The standard of living in the recipient country is
also improved by higher tax revenue from the company that received
the foreign direct investment. However, sometimes countries
neutralize that increased revenue by offering tax incentives to attract
the FDI in the first place.
Most often, Open Econ - ANSWERS-E
, An investment made by a company or entity based in one country,
into a company or entity based in another country is a Foreign Direct
Investment. These FDI's differ substantially from indirect investments
such as portfolio flows, wherein overseas institutions invest in
equities listed on a nation's stock exchange. Entities making direct
investments typically have a significant degree of influence and
control over the company into which the investment is made. Open
economies with skilled workforces and good growth prospects tend to
attract larger amounts of foreign direct investment than closed, highly
regulated economies. The standard of living in the recipient country is
also improved by higher tax revenue from the company that received
the foreign direct investment. However, sometimes countries
neutralize that increased revenue by offering tax incentives to attract
the FDI in the first place.
Overseas institutions - ANSWERS-C
His ____________ appearance made many feel comfortable in his
moral judgments.
A. Brittle
B. Sagacious
C. Prolific
D. Repressive
E. Destitute - ANSWERS-B
He can't do _____________, but he can provide consistent and solid
performance.
