Quiz 6 Part 1

1.

1 point

Which of the following statements is not true?

A higher expected future price will increase current demand

A lower expected future price will decrease current demand

A higher expected future income will reduce the demand for all normal goods

A lower expected future income will reduce the demand for all normal goods

all of the above

2.

1 point

Globalization is:

A transplanetary process or set of processes involving increasing liquidity and the growing multidirectional flows of people, objects, services, places, and information as well as the structures they encounter and create that are barriers to, or expedite those flows

the spread of worldwide practices, relations, consciousness, and organization of social life

the increasingly interconnected relation among places in the world brought about by cheapening transportation and improved communications, and reflected in increasing international investment, trade, and the movement of peoples and ideas

the closer integration of the countries of the world-especially the increased level of trade sand movements of capital - brought on by the lower costs of transportation and communication

all of the above

3.

1 point

Most of the population increase in the world today is:

from developed nations with good health and sanitation standards

from northern hemisphere nations which had colonial and imperial advantages relative to southern hemisphere nations

from developing nations where values and customs are more traditional

due to secular values becoming more accepted due to the norming effect of globalization

a and d

4.

1 point

What person wrote: "It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their self-interest."?

Adam Smith

Thomas Friedman

Thomas Malthus

Carl Ritzer

Karl Marx

5.

1 point

A bureaucracy is:

the systematic and scientific organization of human groups, social systems and institutions

a labor management system where workers are compartmentalized (assigned cubicles) rather than working together in a common workspace

is a large hierarchical organization that is governed by formal rules and regulations, and that has a clear specification of work tasks

a form of management that originated from military and penitentiary systems in the early 1900s

c and d

6.

1 point

According to Ritzer, McDonaldization is an example of

Globalization

Unfair Competition

Government Market Externality

Convergence

a and d

7.

1 point

A nation's standard of living depends on:

the security of its currency

its productivity

its values and history

its form of government (social monarchy is best)

its commitment to the environment

8.

1 point

Competition and expanded markets work to:

increase market efficiency

lower costs

increase consumption

increase savings

a,b, and c

9.

1 point

Globalization Social and Economic Theorists:

identify a UN governed New World Order as the eventual outcome of economic globalization

suggest that the rapid acceptance of globalization is due to the compatibility of free market capitalism with human nature

have noted an equal and substantial increase in incomes and living conditions for all social strata where globalization has been welcomed

have shown that globalization first serves to integrate the world's nations and cultures, but eventually increases nationalization and intolerance due to cultural incompatibilities and economic inequities

none of the above

10.

1 point

According to Clark's Sector Model (figure below) Canada is best identified as:

sector-based

post-industrial

the world's second largest country by area

multicultural

democratic

11.

1 point

The sub-prime loan crisis...

precipitated a world-wide recession in 2008

was caused by packaging predatory home loans with sound home loans as financial commodities and selling them on the world market

resulted in Google being expelled from China

has come and gone with little residual effect

a and b

12.

1 point

Examples of heavy barriers to "global flow" of trade include all but:

social and economic class systems

race

ethnicity

religion

none of the above

13.

1 point

Which of the following statements could be termed globalization "transformationalist?"

Globalization economics determines new international order

International relations are influenced by (improved by) globalization

States are required (by their citizens) to adjust their role to the new situation

a and b only

a,b, and c

14.

1 point

Modern theorists conclude that economic globalization will ultimately result in:

homogenization of culture and eventually religion

fragmentation into disparate and incompatible types of civilization

a heterogeneous matrix local enclaves with both distinct and dynamic cultural/social values

a rigid and global class structure seperating wealthy elite from everyone else

all of the above

15.

1 point

The four pillars of McDonaldization include all those below expect:

control

adaptability

predictability

efficiency

calculability

16.

1 point

MacDonald's is best characterized as:

a North American fast food franchise

a class example of out-sourcing

a transnational corporation

a quiet Scottish restaurant

a ruthless and exploitive organization with no redeeming qualities

17.

1 point

Thanks to the norming effect of the internet, mass media, Americanization, and MacDonaldization....globalization has already eliminated much of the cultural/social and religious variety from the earth

True

False

18.

1 point

The world's reserve currency is:

the British pound

the market price

the Euro

the US dollar

the Yuan

19.

1 point

A declining currency

increases exports

reduces inflation

increase interest rates

a and c

a,b, and c

20.

1 point

The form of trade in which one country cannot benefit unless another country loses is called:

comparative advantage

absolute advantage

imperialism

neoliberalism

mercantilism

21.

1 point

ARM

CDO

Freddie Mac

prints the money

housing index

VRM

22.

1 point

FRB

VRM

Freddie Mac

prints the money

CDO

housing index

23.

1 point

Case-Schlinder

housing index

VRM

Freddie Mac

prints the money

CDO

24.

1 point

MBS

housing index

Freddie Mac

prints the money

VRM

CDO

25.

1 point

Fannie May

CDO

housing index

Freddie Mac

VRM

prints the money

26.

1 point

"Subprime" loans are:

variable rate loans that are given at initials rates less than the federal reserve prime rate.

loans that are less likely to be repaid than conventional loans.

loans on properties that are run down or less attractive in other ways.

loans to preferred customers at less than the federal reserve prime rate.

government stimulus loans to businesses that are too big to fail.

27.

1 point

Mortgage brokers make their money

from the banks that pay their salary as an employee.

from a flat fee that the borrower pays.

from commissions that the bank that actually loans the money pays them.

from the insurance agency that insures the loans for the banks.

from the interest that the borrower pays on the loan.

28.

1 point

The subprime loan crisis was caused by:

home mortgage loans to people that could never repay them

all of the above

liar`s loans that allowed people without jobs and bad credit to fill out their own loan applications

packaging loans as complex "derivatives" which hid their problems from investors

over-inflated real estate prices caused by subprime loans

29.

1 point

Why didn`t the institutions that bought the subprime loan derivatives just foreclose on the properties that were the collateral for the loans?

they did forclose, which is why so much property in the US is foreign owned.

they did not want to start a panic by forclosing on so many properties

US la protected subprime home owners from the foreclosing on so many properties.

the derivative securities were bonds not the collateral-backed mortgages.

The Obama administration paid off the subprime loans as economic stimulus.

30.

1 point

US regulations for home loans were relaxed:

because greedy banks wanted to make more money

to facilitate homeownership to low income Americans

because US homes had never declined in value

US regulations were not relaxed; they were violated by US Mortgage Brokers and Banks

as a strategy to curb rising Chinese economic influence

31.

1 point

Counting international stock market losses, decline in US home values, personal and institutional bankruptcy losses, and various international economic bail out and stimulus packages ...the total loss to the world economy in UD $ was about:

20 billion dollars

100 billion dollars

200 billion dollars

900 billion dollars

43 trillion dollars

32.

1 point

The acronym ARM stands for:

Adjustable Rate Mortgages

Accommodation, Rescue and Mitigation

Advanced Retail Mortgage

Accelerated Risk Market

American Reserve Money

33.

1 point

by 20092010, the global sum of all government bail-out packages in US $ was:

20 billion dollars

50 billion dollars

100 billion dollars

500 billion dollars

2400 billion dollars

34.

1 point

Why did the 2008 collapse of the US Housing Market have such negative impacts on the international economy?

international direct participation through foreign ownership of US sub-prime loan derivatives

globalization

Chinese intervention to subvert recovery of western econonomies and developing nations refused to buy euro-american products

loss of capital from financial institutions caused economic recession

a, b, and d

35.

1 point

What is name of the US housing value index on the graph below?

American Home Value (AHV) index

Freddie Mac/Fannie Mae (M&M) index

Countrywide Fiancial Corporation (CFC) index

Case-Shriller Index

Federal Mortgage and Housing (FMH) index