School of Advanced Educational Programs

National Economics University

Hanoi, Vietnam
Summer 2020

WORLD ECONOMY NAME __ ___________________

DR DEANE PHAM STUDENT ID ______________
EXERCISE C1-14 ROSTER # ______________ A B

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.

1) The total number Of TNCs has increased since 1970 with mergers and consolidations. 1)

2) According to your text, today's world economy began in the 1900s, along with the rise of the 2)
automobile industry.

3) Japan has the second largest economy in the world. 3)

4) Globalization of the economy has necessitated the conceptualization of the world as a system 4)
rather than simply a set of regions.

5) A fundamental element of economic geography is culture. 5)

6) Some people resent globalization as they see it as American cultural imperialism 6)

7) Annual world economic growth rates average between 3% and 5% annually. 7)

8) Shortage of clean water is one of the most easily fixed problems in LDCs (less developed 8)
countries).

9) According to the authors of your textbook, national and state borders have become less important 9)
because of globalization.

10) The primary flow of goods associated with globalization of consumption is from more developed 10)
countries to less developed countries.

11) Total fertility rate is very similar to the average number of children per family. 11)

12) Projected reserves represent estimates of the quantities likely to be added to reserves because of 12)
discoveries and changes in prices and technologies.

13) The functional orientation model can be ideal for any firm. 13)

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14) Truck farming is a sector of market gardening that relies heavily on truck transportation. 14)

15) Deindustrialization in the U.S. was followed by a dramatic reduction in its manufacturing output. 15)

16) Subcontracting and the shifting of work to other locations and firms outside the principal 16)
corporation is known as outsourcing.

17) A round of restructuring of capitalism starting with the deep recession in 1974-1975 following the 17)
oil shock of 1973 caused massive industrialization to occur.

18) The hearth area of the Industrial Revolution was northern England. 18)

19) Agglomeration economies accounted for the manufacturing activity in the North American 19)
Manufacturing Belt.

20) Climate is the central predictor of location in Von Thunen's model of agricultural land use. 20)

21) Agribusiness in the U.S. has not significantly extended livestock farming. 21)

22) In shifting cultivation, five or more crops are typically cultivated in a single swidden. 22)

23) Swidden agriculture survives in tropical areas with a high level of population pressure. 23)

24) Plantations are most common in the tropics. 24)

25) Methods for achieving growth can be both internal and external to the firm. 25)

26) Plantations are most common in the tropics. 26)

27) Subcontracting and the shifting of work to other locations and firms outside the principal 27)
corporation is known as outsourcing.

28) Even in most of the developing world, the services labor force comprises a large proportion of the 28)
total labor force.

29) The primary purpose of savings banks is to buy and sell securities. 29)

30) The U.S. runs an extremely large surplus in service exports. 30)

31) Even in most of the developing world, the services labor force comprises a large proportion of the 31)
total labor force.

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32) The regulation on the banking system in the U.S. resulted in a fragmented, decentralized system. 32)

33) As stated in the text, women make 70% of what men make because of rampant discrimination in 33)
the labor force.

34) The number of banks in the U.S. is declining due to mergers and acquisitions that are reshaping 34)
the industry.

35) Services is also known as the secondary sector of the economy. 35)

36) Among all educational groups, unemployment is highest for those with just a high school 36)
diploma.

37) Internet penetration rates are generally low in Europe. 37)

38) The basic sector recycles corporate and personal incomes in ways that meet the demands of firms 38)
and households locally.

39) Consumption is a major interface between the rich and poor. 39)

40) Since the 1980s, U.S. savings rates have remained steady at 4%. 40)

41) After World War II, the expansion of consumerism was closely linked to the growth of credit. 41)

42) Consumerism is the term used to describe "materialism run amuck." 42)

43) Total household debt as a percentage of personal disposable income has remained steady in the 43)
U.S..

44) Movement of affluent residents to suburbs usually begins the process of exurb migration and 44)
urban blight.

45) The cities of Calcutta, Hong Kong, and Singapore all originated as colonial or trading cities. 45)

46) The primary function of global cities is as command and control centers. 46)

47) Firms that must have the most access to clients and suppliers of inputs and services tend to 47)
agglomerate on the urban periphery.

48) Multi-national corporations dominate the international regime for aviation. 48)

49) The fundamental principle governing international aviation is that States have sovereign control 49)
over their own air space.

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50) The reduction of government controls of economic activity within a country is called 50)
privatization.

51) Telecommunications mean the end of geography. 51)

52) Insurance is a service sector that centers on the commodification of risk. 52)

53) The number of banks in the U.S. is declining due to mergers and acquisitions that are reshaping 53)
the industry.

54) It is difficult to measure the productivity of public services because these services do not have a 54)
market value.

55) Banking involves the exchange of money between savers and borrowers, as well as the exchange 55)
of assets from borrowers to savers.

56) World output has grown faster than world trade since 1950. 56)

57) World-wide, access to health care is the worst in South America. 57)

58) In order to qualify for debt relief from the United Nations, a country must reduce government 58)
subsidies to the poor, devalue local currency, and implement "structural adjustment" programs.

59) Africa's economies are largely centered on the production of textiles. 59)

60) Worldwide, today there are more obese people than malnourished ones. 60)

61) The favelas of Brazil are examples of squatter settlements. 61)

62) Japan's chief trading partners are other Asian countries. 62)

63) The U.S. is competitive internationally in medical equipment, transportation equipment, 63)
computer hardware, and computer software.

64) The U.S. is the world's third leading trading nation. 64)

65) Japan leads the world in steel production. 65)

66) According to Michael Porter's Theory of Competitive Advantage, cheap labor most determines 66)
economic success.

67) The prices received for exports relative to the prices paid for imports is called the free market. 67)

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68) Quotas, subsidies, licenses and other restrictions on imports are examples of tariffs. 68)

69) According to Ricardo, large economies tend to be inefficient ones. 69)

70) The U.S. dollar represents about 80% of all eurocurrencies. 70)

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Answer Key
Testname: .WE6EXERCISE1-14

1) FALSE
2) FALSE
3) FALSE
4) TRUE
5) TRUE
6) FALSE
7) FALSE
8) FALSE
9) TRUE
10) TRUE
11) TRUE
12) TRUE
13) FALSE
14) FALSE
15) FALSE
16) TRUE
17) FALSE
18) TRUE
19) TRUE
20) FALSE
21) FALSE
22) TRUE
23) TRUE
24) TRUE
25) TRUE
26) TRUE
27) TRUE
28) TRUE
29) FALSE
30) FALSE
31) TRUE
32) TRUE
33) FALSE
34) TRUE
35) FALSE
36) FALSE
37) FALSE
38) FALSE
39) FALSE
40) FALSE
41) TRUE
42) FALSE

6
Answer Key
Testname: .WE6EXERCISE1-14

43) FALSE
44) TRUE
45) TRUE
46) TRUE
47) FALSE
48) FALSE
49) TRUE
50) FALSE
51) FALSE
52) TRUE
53) TRUE
54) TRUE
55) TRUE
56) FALSE
57) FALSE
58) FALSE
59) FALSE
60) TRUE
61) TRUE
62) TRUE
63) TRUE
64) FALSE
65) FALSE
66) FALSE
67) FALSE
68) FALSE
69) FALSE
70) TRUE