Economic Geography: Systems, Development, and Globalization

Question 1

Identify the characteristic that distinguishes a market economy:

Accepted Answer

Predominance of private ownership of productive assets

Answer

Significant government intervention in price determination

Answer

Equal distribution of income among citizens

Answer

Centralized planning of economic activities

Question 2

Globalization can be described as:

Accepted Answer

Enhanced international exchange of ideas, goods, and people

Answer

Self-sufficiency of nations in economic activities

Answer

Government control over international trade

Answer

Absence of cross-border economic interactions

Question 3

The principle of comparative advantage suggests that countries should:

Accepted Answer

Specialize in producing goods where they have the lowest absolute cost

Answer

Produce all goods domestically, regardless of cost

Answer

Specialize in producing goods where they have the highest absolute cost

Answer

Import all goods and refrain from domestic production

Question 4

Which of the following is a defining feature of a mixed economic system?

Accepted Answer

Coexistence of private and public ownership and regulation

Answer

Exclusive government ownership of industries

Answer

Complete absence of government intervention in the economy

Answer

Central planning of all economic activities

Question 5

Economic growth and economic development differ primarily in that:

Accepted Answer

Economic development encompasses broader improvements in living standards, while economic growth focuses solely on GDP increase.

Answer

Economic growth encompasses broader improvements in living standards, while economic development focuses solely on GDP increase.

Answer

There is no meaningful distinction between the two terms.

Answer

Economic growth considers only material well-being, while economic development includes both material and non-material well-being.

Question 6

What drives trade patterns according to the theory of comparative advantage?

Accepted Answer

The cost of producing one good compared to another

Answer

Being the absolute best at producing a good

Answer

The difference in payments between countries

Question 7

Which of the following is NOT a recognized form of economic system?

Accepted Answer

Democracy

Answer

Communism

Answer

Capitalism

Answer

Socialism

Question 8

The economic principle that assumes individuals make logical choices to maximize their satisfaction is known as:

Accepted Answer

Rational choice theory

Answer

Principle of diminishing returns

Answer

Principle of marginal utility

Answer

Principle of substitution

Question 9

Which of the following is a primary sector of the United States economy?

Accepted Answer

Agriculture

Answer

Services

Answer

Manufacturing

Answer

Financial services

Question 10

What is the primary objective of the Federal Reserve System?

Accepted Answer

To conduct monetary policy and regulate the U.S. financial system

Answer

To set tax rates

Answer

To provide social security benefits

Answer

To lend money to individuals and businesses

Question 11

Which economic indicator measures the monetary value of all finished goods and services produced within a country's borders in a specific time period?

Accepted Answer

Gross Domestic Product (GDP)

Answer

Consumer Price Index (CPI)

Answer

Unemployment rate

Answer

Dow Jones Industrial Average

Question 12

Globalization has primarily led to:

Accepted Answer

Increased interconnectedness and interdependence among countries

Answer

Decreased government regulation

Answer

Reduced income inequality

Question 13

A country with a high Human Development Index (HDI) typically has:

Accepted Answer

High life expectancy, high literacy rates, and high per capita income

Answer

Strong military

Answer

Abundant natural resources

Question 14

Which of the following is a key characteristic of a command economy?

Accepted Answer

Centralized government planning and decision-making

Answer

Free market competition

Answer

Emphasis on private property

Answer

Limited government intervention

Question 15

The process of converting raw materials into usable products is referred to as:

Accepted Answer

Manufacturing

Answer

Distribution

Answer

Extraction

Answer

Consumption

Question 16

A benefit of foreign direct investment (FDI) is:

Accepted Answer

Transfer of technology and expertise

Answer

Loss of local control over resources

Answer

Dependence on foreign markets

Answer

Reduced environmental standards

Question 17

A potential negative consequence of rapid economic growth can be:

Accepted Answer

Increased pollution and environmental degradation

Answer

Reduced poverty and unemployment

Answer

Improved healthcare and education

Answer

Enhanced infrastructure and transportation

Question 18

Which government policy aims to lessen economic gaps by reallocating wealth?

Accepted Answer

Progressive taxation

Answer

Laissez-faire

Answer

Monetary policy

Answer

Expansionary fiscal policy

Question 19

Which of the following is NOT considered a primary economic system?

Accepted Answer

Monarchy

Answer

Socialism

Answer

Capitalism

Answer

Communism

Question 20

How does globalization influence economic development?

Accepted Answer

Increased trade opportunities and economic interdependence

Answer

Primarily negative consequences for developing countries

Answer

No significant impact on economic growth

Question 21

In what way do economic factors influence human activities?

Accepted Answer

Influence production, consumption, distribution, and utilization of goods and services

Answer

Solely determine population growth rates

Answer

Have no impact on social interactions

Question 22

Which of the following is a defining characteristic of a command economy?

Accepted Answer

Government control of economic decision-making

Answer

Privatization of all industries

Answer

Absence of government intervention in the economy

Answer

Balanced mix of government and private sector influence

Question 23

How does geography influence the distribution of economic activities?

Accepted Answer

Access to resources, transportation networks, and labor force

Answer

Cultural preferences and values alone

Answer

Government policies exclusively

Question 24

What is the fundamental difference between economic growth and economic development?

Accepted Answer

Economic growth is a quantitative measure, while economic development encompasses broader social and qualitative improvements

Answer

They are interchangeable terms

Question 25

How does trade liberalization contribute to economic outcomes?

Accepted Answer

May lead to increased competition, efficiency, and economic integration

Answer

Has no significant impact on economic development

Answer

Always results in job losses and decreased economic growth

Question 26

What is the role of technology in the context of economic development?

Accepted Answer

Enhances productivity, innovation, and global connectivity

Answer

Solely leads to job displacement and unemployment

Answer

Has no significant impact on economic outcomes

Question 27

How can sustainable economic development be achieved?

Accepted Answer

Balancing economic growth with environmental preservation and social equity

Answer

Focusing solely on resource extraction

Answer

Prioritizing economic progress without regard for the environment

Question 28

Which of the following is a major factor contributing to economic growth?

Accepted Answer

Investment in infrastructure

Answer

Low levels of education

Answer

Cultural homogeneity

Answer

Exclusively exporting raw materials

Question 29

What is the primary objective of international trade?

Accepted Answer

To facilitate the exchange of goods and services across borders

Answer

To promote political alliances

Answer

To control global population growth

Question 30

Which of the following is not a prevalent economic system?

Accepted Answer

Monetarism

Answer

Communism

Answer

Socialism

Answer

Capitalism

Question 31

What is the term used to describe the increasing interconnectedness of economies on a global scale?

Accepted Answer

Globalization

Answer

Interdependence

Answer

Internationalism

Answer

Globalism

Question 32

Which of the following is a potential benefit of globalization?

Accepted Answer

Increased global prosperity

Answer

Environmental degradation

Answer

Reduced cultural diversity

Answer

Increased income inequality

Question 33

How do extensive and intensive economic growth differ?

Accepted Answer

Extensive growth relies on additional resources, while intensive growth focuses on utilizing existing resources more efficiently.

Answer

Extensive growth is short-term, while intensive growth is long-term.

Question 34

What is the primary function of the World Trade Organization (WTO)?

Accepted Answer

To establish and enforce rules for international trade

Answer

To promote human rights

Answer

To regulate global monetary policy

Answer

To provide military assistance to developing countries

Question 35

What is the overarching goal of economic sustainability?

Accepted Answer

Meeting the needs of the present without compromising the ability of future generations to meet their own needs

Answer

Reducing the government's role in the economy

Answer

Achieving the highest possible economic growth rate

Question 36

Which primary economic activity primarily focuses on extracting natural resources from the earth?

Accepted Answer

Mining

Answer

Transportation

Answer

Manufacturing

Answer

Retail

Question 37

Which factor is recognized as a key driver of sustained economic growth and progress?

Accepted Answer

Technological innovation

Answer

Natural disasters

Answer

Political stability

Question 38

In which economic system do individuals and private entities primarily own and control the factors of production, such as land, labor, and capital?

Accepted Answer

Capitalism

Answer

Communism

Answer

Mixed Economy

Answer

Socialism

Question 39

Which characteristic is a defining feature of a globalized economy?

Accepted Answer

Increased interdependence and interconnectedness among countries

Answer

Limited movement of goods and services across borders

Answer

Absence of foreign investment and trade

Answer

Self-sufficiency of nations

Question 40

Which potential benefit of economic integration among countries is characterized by expanded opportunities for businesses and consumers?

Accepted Answer

Increased market access

Answer

Reduced economic growth

Answer

Higher trade barriers

Answer

Less competition in the marketplace

Question 41

Which type of company operates in multiple countries, often with production facilities and subsidiaries in different regions of the world?

Accepted Answer

Multinational company (MNC)

Answer

Private company

Answer

Local company

Answer

Export-only company

Question 42

Which factor can contribute to the concentration of economic activity in specific geographic areas?

Accepted Answer

Availability of reliable transportation networks

Answer

Unfavorable climate conditions

Answer

Frequent political instability

Answer

Lack of government support for businesses

Question 43

Which challenge is often associated with the process of globalization?

Accepted Answer

Unequal distribution of benefits and opportunities

Answer

Enhanced cultural exchange

Answer

Increased economic growth for all countries

Answer

Improved communication technologies

Question 44

Which indicator is commonly used to measure a country's overall economic performance and progress?

Accepted Answer

Gross domestic product (GDP)

Answer

Literacy rate

Answer

Life expectancy

Answer

Military expenditure

Question 45

Which type of inequality refers to the uneven distribution of income and earnings among individuals and groups in a society?

Accepted Answer

Income inequality

Answer

Political inequality

Answer

Wealth inequality

Answer

Social inequality

Question 46

Which characteristic is fundamental to a market economic system?

Accepted Answer

Prices are shaped by the forces of supply and demand.

Answer

Resource allocation is determined by customs or social hierarchy.

Answer

Government entities dictate all economic activity.

Question 47

Which factor has significantly facilitated the globalization of economic activity?

Accepted Answer

Technological advancements in transportation and communication.

Answer

Growing nationalism.

Answer

Increased intervention by governments.

Question 48

Identify the dominant economic sector in the United States:

Accepted Answer

Service industry.

Answer

Manufacturing.

Answer

Agriculture.

Answer

Mining.

Question 49

Which is a potential advantage of economic development?

Accepted Answer

Enhanced living standards.

Answer

Political instability.

Answer

Heightened environmental degradation.

Answer

Social unrest.

Question 50

Which is a significant obstacle to a country's economic growth?

Accepted Answer

Inadequate infrastructure.

Answer

Political stability.

Answer

Abundant natural resources.

Answer

Highly-educated population.

Question 51

Which type of data is used to measure economic activity?

Accepted Answer

Gross Domestic Product (GDP).

Answer

Number of religious affiliations.

Answer

Ruling political party.

Answer

Average monthly rainfall.

Question 52

Which government policy aims to influence economic growth?

Accepted Answer

Fiscal policy.

Answer

Indiscriminate money printing.

Answer

Military expansion.

Answer

Import restrictions.

Question 53

Which challenge do developing countries often face in their pursuit of economic progress?

Accepted Answer

Limited access to investment capital.

Answer

Highly skilled workforce.

Answer

Excessive infrastructure development.

Answer

Mature political systems.

Question 54

Identify an example of a multinational corporation:

Accepted Answer

Apple Inc.

Answer

Home Depot.

Answer

Walmart.

Answer

Target.