Economy
What do economists mean by “resources”?
a) Only money
b) Goods and services
c) Land, labor, and capital
d) Government assets
B, C and D
Who controls the money supply in most countries?
a) The President
b) The Central Bank
c) The Ministry of Finance
d) Congress
The Central Bank
Which agreement allows trade between countries without tariffs?
a) Free Trade Area
b) Customs Union
c) Political Union
d) Common Market
Free Trade Area
What does the IMF mainly do?
a) Promote peace
b) Provide short-term financial assistance
c) Create trade rules
d) Fund education projects
Short-term financial assitance
The situation in which there are not enough resources to satisfy all wants is called __________.
Scarcity
Fiscal policy refers to the government’s use of __________ and __________ to influence the economy.
Taxing and spendind
The __________ is an example of a Monetary Union where countries share the same currency.
Eurozone
The __________ deals with disputes between countries, while the __________ prosecutes individuals for war crimes.
ICJ- ICC
If demand for a product increases but supply stays the same, what happens to the price?
Goes up
Example of expansionary policy (fiscal or monetary)
Fiscal: reducing taxes and more spending
Monetary: lower interest rates, more money circulating
Describe protectionism
Policies aimed at limiting imports to protect and prioritize local or national businesses
Which organization focuses on workers’ rights and labor standards and how do they do it?
ILO, Formulates and oversees international labor standards. Provides technical assistance to help them implement thesestandards. Promotes social dialogue and tripartism. Conducts research and provides data on the world of work.
Explain how the circular flow of the economy works
Governments buy both, tax and invests.
If the government increases public spending, what short-term effects could this have on employment and national debt?
In the short term, it can increase employment and demand, but may also raise national debt if spending exceeds revenue.
How does free trade benefit consumers but sometimes hurt local producers?
Consumers: have more choices, better quality and cheaper products
Local producers: might not be able to compete with large international companies
Give one example of a situation where a country might need help from the World Bank instead of the IMF. Explain why.
The World Bank supports long-term development projects (infrastructure, education) for developing nations, while IMF loans are for short-term stabilization for all members.
Describe one way the informal economy can both help and harm a country’s economic development.
Hlep by making sure there are more jobs abailable but damages because it is harder to keep track, make sure laws are being followed and taxing
Explain how monetary and fiscal policies can work together to fight a recession. Give one example.
Governments can increase spending (fiscal) and lower interest rates (monetary) to boost demand and investment — e.g., actions taken after the 2008 crisis.
Explain the difference between the "levels" of economic integration
Economic Union: Common market and the harmonization of economic policies like monetary, fiscal
Monetary Union: Economic union with the same currency
Private deals with individuals, companies and privat eentities focusing on fair cross-border transactions and who has jurisdiction over something. Example: marriage and divorce
Public regulates States, IOs and its focused on peace, security and cooperation amongs these actors. Example: Law of the Sea and Laws of War