Economics of S & E Asia

13. Most democratic nations have _______ economies.
A. mixed.
B. traditional.
C. command.
D. market.

14. Why is it important for a country to invest in human capital?
A. A country needs money in order to pay its workers.
B. Workers enjoy getting extra training and job opportunities.
C. Businesses cannot do all the training needed by workers to be successful.
D. A country’s economy is more successful when workers have good education and health care.

2. Most economic decisions in North Korea are made by:
A. Korean industrial leaders
B. North Korean Parliament
C. Korean people
D. Premier Kim Jong-il

9. Why does specialization make trade between countries easier?
A. There will always be a steady supply of goods on the market so trade is not needed.
B. Countries can produce what they make best and trade with others for what they need.
C. A country’s economy will never go through a difficult time if they specialize in a good.
D. The competition between countries will not exist.

16. What is a main reason for people to exchange currency?
A. to have foreign money
B. to use American dollars to trade
C. to make more money by trading currencies
D. to buy and sell goods and services with other countries

8. Which has been a constant problem for India’s economy?
A. A GDP that has not grown in many years
B. Lack of a strong middle class
C. Expense of maintaining a large military
D. Overpopulation and poverty found throughout the country

7. Today, at least 50% of China’s workers are involved in:
A. The military
B. Agriculture
C. Service industries
D. Education

5. The economy of North Korea can best be described as:
A. Traditional
B. Command
C. Market
D. Mixed

18. The economies of China, India, and Japan can all best be described as:
A. Traditional
B. Command
C. Market
D. Mixed

6. Poor decisions made about how to organize farming in North Korea have resulted in many years of:
A. Drought
B. Farmers refusing to work
C. Starvation
D. Arguments about what crops to grow

4. In a command economy, economic decisions are made by the ___________.
A. consumers.
B. market.
C. government.
D. producers.

3. The Japanese economy has to make up for the country’s lack of:
A. Education
B. Population
C. Natural resources
D. Fish

11. If Japan’s government puts a limit on how much Vietnamese rice it will import this year, what trade barrier is this?
A. Embargo
B. Tariff
C. Quota
D. Opportunity Cost

17. What is an example of a physical trade barrier in Southeast Asia?
A. Quota on South Korean televisions
B. Tariff on Japanese cars
C. Gobi desert
D. Embargo on North Korea

Why do most countries in the world today fall somewhere between a market and a command economy?
A. Some government control has never been successful.
B. Government control always makes a market economy more profitable.
C. Most consumers prefer government control to free market.
D. Most countries have found they need a mix of free market and government control to be successful.

21. Which trade barrier sets up a complete ban on trading between countries?
A. mountain
B. tariff
C. quota
D. embargo

15. The Great Leap Forward and the Cultural Revolution were examples of China’s attempt to:
A. Improve the economy
B. End communism
C. Sell more goods with the US
D. Control population growth

12. Which of the following BEST describes a market system?
A. The government provides services, such as telephones and television.
B. A person can start any legal business and charge any price.
C. The government provides food and housing to all workers.
D. Businesses are owned by the government.

10. Why has Japan specialized in the area of technology?
A. It has few natural resources and little farmland.
B. It has a poorly educated population.
C. The money earned is used to support the military.
D. The country has little in the way of fishing.