Chapter 2 warmup

Chapter 2 Assignments Warm up 2 1. In the past one hundred years, the most fundamental change in the world economy is the _________. A. Movement of auto manufacturing to China B. Creation of the World Trade Organization C. Creation of the European Union D. Struggle between capitalism and socialism E. Emergence of global markets 2. Economic growth is measured by gross domestic products (GDP) and reflects a nation’s _______. A. Currency valuation B. Economic activity C. Budget deficits or surplus D. Unemployment rate E. Balance of trade 3. In ________, the state has the broad powers to decide what goods and services are produced and in what quantities. This system is not based on consumer demand. A. Market capitalism B. Centrally planned socialism C. Centrally planned capitalism D. Command allocation E. Market socialism 4. Which of the following explains why Sweden’s economic system is considered a hybrid of capitalism and centrally planned socialism? A. Resource allocation is market oriented B. The Swedish government has tight controls over production C. Sweden conforms to the Anglo-Saxon model of market systems D. The government does not hold ownership share in corporations E. Sweden operates as a so-called “welfare state” where the government provides a strong social safety net 5. The World Bank has developed a classification system that uses ________ as a base. A. Gross national product B. Average household income C. Per capita gross national income D. Gross national product annual growth rate E. Population 6. Which of the following World Bank classifications includes countries that are developing or industrializing?