Heimler 7.6 Trade and the World Economy
This assignment consists of multiple-choice questions designed to assess your understanding of trade and the world economy, focusing on concepts such as comparative advantage, neoliberal policies, and economic interdependence. Use your knowledge from both Heimler’s History AP Human Geography video for Topic 7.6 and the College Board Course and Exam Description (CED) to answer the questions.
Question 1
Which of the following best describes the concept of comparative advantage?
A country produces goods at a lower opportunity cost than other countries.
A country produces all goods more efficiently than any other country.
A country imports more goods than it exports.
A country has a trade surplus with its trading partners.
A country has a higher GDP than its neighbors.
Question 2
How do neoliberal policies, such as free trade agreements, impact global trade?
They increase government intervention in trade.
They create barriers to international trade.
They promote free trade and reduce tariffs.
They focus on local trade agreements only.
They decrease economic interdependence among countries.
Question 3
Which organization is primarily responsible for regulating global trade and resolving trade disputes?
European Union (EU)
World Trade Organization (WTO)
Organization of Petroleum Exporting Countries (OPEC)
Mercosur
International Monetary Fund (IMF)
Question 4
What is the primary purpose of tariffs in international trade?
To increase the competitiveness of foreign goods.
To reduce the cost of imported goods.
To protect domestic industries from foreign competition.
To promote free trade among nations.
To encourage foreign investment.
Question 5
Which of the following is an example of a global financial institution that provides international lending?
World Trade Organization (WTO)
European Union (EU)
International Monetary Fund (IMF)
Organization of Petroleum Exporting Countries (OPEC)
Mercosur
Question 6
What is microlending, and how does it impact economic development?
Providing large loans to governments to build infrastructure.
Offering small loans to individuals in developing countries to start businesses.
Investing in large multinational corporations to boost trade.
Funding military operations to stabilize regions.
Providing grants to non-governmental organizations for research.
Question 7
Which of the following best illustrates the concept of complementarity in trade?
Two countries both exporting the same type of goods.
A country importing goods it can produce more efficiently.
Two countries trading goods that each lacks but the other produces efficiently.
A country refusing to trade with others to protect its economy.
A country imposing tariffs to discourage imports.
Question 8
How do global financial crises demonstrate economic interdependence?
They affect only the country where the crisis originated.
They lead to increased isolationism among countries.
They cause economic downturns in multiple countries due to interconnected economies.
They result in the strengthening of local currencies worldwide.
They have no impact on international trade agreements.
Question 9
Which trade organization is known for its influence over global oil prices?
European Union (EU)
World Trade Organization (WTO)
Organization of Petroleum Exporting Countries (OPEC)
Mercosur
International Monetary Fund (IMF)
Question 10
What is the main goal of the European Union (EU) in terms of economic policy?
To create a single political entity for all European countries.
To establish a common defense policy.
To integrate member countries' economies and promote free trade within Europe.
To regulate oil production among member countries.
To provide microlending services to developing countries.
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