EXAM QUESTIONS AND ANSWERS
/. Which is an example of a government-owned business in the United States? -
Answer-✅*Export-Import Bank
/.Select all that apply
Which of the following are reasons why governments nationalize private firms? (Check
all that apply.)
to increase profitability
to control an earlier investment in a firm
to follow an economic or political ideology
to reduce the extent of bureaucracy
to extract more money from the firms - Answer-✅*to increase profitability
*to control an earlier investment in a firm
*to follow an economic or political ideology
*to extract more money from the firms
/.During Margaret Thatcher's tenure as prime minister of Britain, she decreased the
number of state-owned companies and sold more than 30 companies, thereby raising
$65 billion for the country. This is an example of ______. - Answer-✅*privatization
/.Instability as it pertains to government means that the government ______. - Answer-
✅*cannot maintain itself in power.
/.Businesses like peace and predictability because they provide ______. - Answer-
✅*stability
/.True or false: In most parts of the world, you will not find government-owned
businesses. - Answer-✅*False
[Nearly all types of economies have some form of government-owned business]
/.Select all that apply
Which methods can a government use to minimize unfair international competition?
(Check all that apply.)
national laws
universal system of law
negotiations between governments
institutions such as the WTO - Answer-✅*national laws
*negotiations between governments
, *institutions such as the WTO
/.__________ is when a government takes a private firm to public ownership. - Answer-
✅*Nationalization or Nationalize
/.The selling of government-owned businesses to the private sector is known as
_________. - Answer-✅*privatization
/.What area, particularly related to the Internet, is of increasing concern to governments
as they try to protect the business activities of their citizens? - Answer-✅*cybercrime
/.Select all that apply
Which of the following are characteristic of a stable government? (Check all that apply.)
predictable fiscal policies
radical political policies
predictable monetary policies
maintains itself in power - Answer-✅*predictable fiscal policies
*predictable monetary policies
*maintains itself in power
/.Unlawful acts of violence committed to achieve a variety of objectives are collectively
known as _________. - Answer-✅*terrorism
/.Select all that apply
Which of the following challenges can unstable governments present to businesses?
(Check all that apply.)
gradual policy changes
inability to ensure peace
a pattern of unpredictable change
strong political policies - Answer-✅*inability to ensure peace
*a pattern of unpredictable change
/.Currently, which area is labeled as one of the highest risk areas for kidnapping? -
Answer-✅*South America
/.True or false: A national system of law can minimize unfair international competition. -
Answer-✅*True
[National law can minimize unfair competition]
/.____________ is hijacking that includes kidnapping on the seas. - Answer-✅*Piracy
/.When governments ______ private firms, they take them from private to public
ownership. - Answer-✅*nationalize