Introduction to Economics Exam Practice Tests
Course Introduction
Introduction to Economics provides a foundational exploration of how societies allocate scarce resources to satisfy unlimited wants. The course covers essential concepts such as supply and demand, market structures, opportunity cost, and the role of incentives in economic decision-making. Students will learn about both microeconomics the study of individual and firm behavior and macroeconomics, which examines broader economic factors like inflation, unemployment, and economic growth. Through real-world examples and analytical tools, the course equips students with the skills to understand current economic issues and make informed decisions in their personal and professional lives.
Recommended Textbook
Economics 5th Edition by R. Glenn Hubbard
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Page 2
Chapter 1: Economics: Foundations and Models
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Sample Questions
Q1) By definition, economics is the study of
A) how to make money in the stock market.
B) how to make money in a market economy.
C) the choices people make to attain their goals, given their scarce resources.
D) supply and demand.
Answer: C
Q2) Economists assume that rational people
A) never use all available information as they act to achieve their goals.
B) undertake activities that benefit others and hurt themselves.
C) only weigh the benefits and costs of the most desirable alternative actions.
D) respond to economic incentives.
Answer: D
Q3) Technology is defined as
A) the process of developing and revising models.
B) new innovations and creations.
C) the processes used to produce goods and services.
D) the process of recycling products.
Answer: C
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Chapter 2: Trade-Offs, Comparative Advantage, and the Market System
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Q1) Which of the following statements is true about a simple circular flow model?
A) Producers are neither buyers nor sellers in the product market.
B) Households are neither buyers nor sellers in the input market.
C) Producers are buyers in the factors market.
D) Households are sellers in the product market.
Answer: C
Q2) In a two-good, two country world, if one country has a comparative advantage in the production of one good, it can benefit by trading with other countries.
A)True
B)False
Answer: True
Q3) Refer to Table 2-3. Assume Dina's Diner only produces sliders and hot wings. A combination of 80 sliders and 100 hot wings would appear
A) along Dina's production possibilities frontier.
B) inside Dina's production possibilities frontier.
C) outside Dina's production possibilities frontier.
D) at the vertical intercept of Dina's production possibilities frontier.
Answer: A
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Chapter 3: Where Prices Come From: the Interaction of
Demand and Supply
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Sample Questions
Q1) Nearly a quarter of China's 1.3 billion people are under the age of 15. How will this affect high school enrollment over the next fifteen years? The labor market over the next fifteen years?
Answer: The demand for high school education will increase. The supply of labor over the next 15 years will increase.
Q2) If the demand for a product decreases and the supply of the product does not change, equilibrium price and equilibrium quantity will both increase.
A)True
B)False
Answer: False
Q3) Would a change in the price of in-line skates cause a change in the supply of in-line skates? Why or why not?
Answer: No, a change in the price of in-line skates would not cause a change in the supply of in-line skates. Rather, it would cause a change in the quantity supplied. Supply changes only when there is a change in any variable other than the price that would affect the supply of the good in question.
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Chapter 4: Economic Efficiency, Government Price Setting, and Taxes
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Sample Questions
Q1) Refer to Figure 4-7. The figure above represents the market for iced tea. Assume that this is a competitive market. At a price of $3,
A) the marginal cost of iced tea is greater than the marginal benefit; therefore, output is inefficiently low.
B) producers should lower the price to $1 in order to sell the quantity demanded of 10,000.
C) the marginal benefit of iced tea is greater than the marginal cost; therefore, output is inefficiently low.
D) the marginal benefit of iced tea is greater than the marginal cost; therefore, output is inefficiently high.
Q2) Suppose the demand curve for a product is downward sloping and the supply curve is upward sloping. If a unit tax is imposed in the market for this product,
A) sellers bear the entire burden of the tax.
B) the tax burden will be shared among the government, buyers and sellers.
C) buyers bear the entire burden of the tax.
D) the tax burden will be shared by buyers and sellers.
Q3) What is "tax incidence"? What determines tax incidence in a competitive market?
Q4) What is the difference between scarcity and a shortage?
Page 6
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Chapter 5: Externalities, Environmental Policy, and Public Goods
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Q1) How does a negative externality in production reduce economic efficiency?
Q2) Mandatory motorcycle helmet laws are designed to reduce the severity of injuries resulting from motorcycle involvement in traffic accidents. In this sense, these mandatory helmet laws are reducing ________ of risky behavior.
A) positive externalities
B) negative externalities
C) the private benefit
D) the social benefit
Q3) Refer to Figure 5-9. An efficient way to get the firm to produce the socially optimal output level is
A) for government to set a quota on the quantity of toilet paper that the toilet paper industry can produce.
B) to impose a tax to make the industry bear the external costs it creates.
C) to grant a subsidy to enable the industry to internalize the external costs of production.
D) to assign property rights to the firms in the industry.
Q4) "When it comes to public goods, individuals do not reveal their true preferences because it is not in their self-interest to do so." Evaluate this statement.
Page 7
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Chapter 6: Elasticity: the Responsiveness of Demand and Supply
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Q1) Which of the following explains why a firm would be interested in the knowing the price elasticity of demand for a good it sells?
A) The price elasticity of demand can be used to determine the impact of changes in income on quantity sold.
B) Knowing the price elasticity of demand allows the firm to determine how the cost of producing additional units of the good will change.
C) Knowing the price elasticity of demand allows the firm to calculate how changes in the price of the good will affect the firm's total profit.
D) The price elasticity of demand allows the firm to calculate how changes in the price of the good will affect the firm's total revenue.
Q2) Refer to Table 6-3. Over what range of prices is the demand elastic?
A) over the entire range of prices
B) between $14 and $16
C) between $8 and $16
D) between $2 and $8
Q3) Briefly explain the economic concept of elasticity.
Q4) Explain the relationship between price elasticity of demand and total revenue.
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Chapter 7: The Economics of Health Care
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Sample Questions
Q1) Refer to Figure 7-4. With insurance and a third-party payer system, the equilibrium quantity of medical services is
A) 200.
B) 500.
C) 700.
D) >700.
Q2) Moral hazard refers to the actions people take after they have entered into a transaction that make the other party to the transaction worse off.
A)True
B)False
Q3) Health insurance plans which typically reimburse doctors and hospitals with payment for each service they provide are known as
A) fee-for-service plans.
B) preferred provider organizations.
C) single-health-payer systems.
D) health maintenance organizations.
Q4) What is the main difference between a single-payer health care system and socialized medicine?
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Chapter 8: Firms, the Stock Market, and Corporate Governance
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Sample Questions
Q1) Generally with bond ratings, the higher the rating, the ________ the interest rate an investor will receive and the ________ the risk that the issuer of the bond will default.
A) higher; higher
B) higher; lower
C) lower; higher
D) lower; lower
Q2) What are the advantages of setting up a corporation as opposed to a proprietorship or partnership?
Q3) Who owns a corporation?
A) the board of directors
B) the stockholders
C) the employees
D) the CEO
Q4) Eighty-five percent of all firms employ ________ workers.
A) only one or two
B) fewer than 20
C) 50 or more
D) over 100
Page 10
Q5) What is a corporate bond and what does it specify?
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Chapter 9: Comparative Advantage and the Gains From International Trade
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Sample Questions
Q1) In the real world we don't observe countries completely specializing in the production of goods for which they have a comparative advantage. All of the following are reasons for this except
A) not all goods and services are traded internationally.
B) some countries have more resources than other countries.
C) tastes for many traded goods are different in many countries because of globalization.
D) production of most goods involves increasing opportunity costs.
Q2) Refer to Table 9-5. Select the statement that accurately interprets the data in the table.
A) Madison has an absolute advantage in making tacos and Austin has an absolute advantage in making empanadas.
B) Madison has an absolute advantage in making empanadas and Austin has an absolute advantage in making tacos.
C) Madison has an absolute advantage in making empanadas and tacos.
D) Austin has an absolute advantage in making empanadas and tacos.
Q3) In the United States, imports and exports make up more than half of GDP.
A)True
B)False
Page 11
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Chapter 10: Consumer Choice and Behavioral Economics
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Sample Questions
Q1) The income effect due to a price decrease will result in an increase in the quantity demanded for
A) a Giffen good.
B) an inferior good.
C) a public good.
D) a normal good.
Q2) A study discussed in the Making the Connection feature in the text found that there is ________ that some consumers are not well aware of prices, even for goods they buy regularly.
A) no evidence
B) substantial evidence
C) little evidence
D) no reason to believe
Q3) Economists have shown that when the ultimatum game experiment is carried out, both allocators and recipients act as if fairness is important.
A)True
B)False
Q4) Why might network externalities result in products that contain inferior technologies?
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Chapter 11: Technology, Production, and Costs
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Sample Questions
Q1) Refer to Figure 11-1. The marginal product of the 3rd worker is
A) 57.
B) 19.
C) 15.
D) 11.
Q2) If the average variable cost curve is above the marginal cost curve, then
A) marginal costs must be decreasing.
B) average variable costs must be increasing.
C) marginal costs must be increasing.
D) marginal costs can be either increasing or decreasing.
Q3) If, when a firm doubles all its inputs, its average cost of production increases, then production displays
A) diminishing returns.
B) economies of scale.
C) diseconomies of scale.
D) declining fixed costs.
Q4) If production displays constant returns to scale, then all economies of scale have been exhausted.
A)True
B)False
Page 13
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Chapter 12: Firms in Perfectly Competitive Markets
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Sample Questions
Q1) Refer to Table 12-2. How many pounds of apples should Margie sell to maximize her profit?
A) 300 pounds
B) 400 pounds
C) This cannot be determined without knowing Margie's total or marginal production costs.
D) This can be determined only when all of the values for market price, total revenue, average revenue and marginal revenue are given.
Q2) Which of the following is not true for a firm in perfect competition?
A) Profit equals total revenue minus total cost.
B) Price equals average revenue.
C) Average revenue is greater than marginal revenue.
D) Marginal revenue equals the change in total revenue from selling one more unit.
Q3) A constant-cost industry is an industry in which
A) average costs fall as the industry expands output.
B) average costs rise as the industry expands output.
C) average costs remain constant as the industry expands output.
D) input prices rise at a constant rate as firms in the industry use more inputs.
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Chapter 13: Monopolistic Competition: the Competitive
Model in a More Realistic Setting
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Q1) Refer to Table 13-4. Based on the data in the table, which of the following statements is true?
A) The table summarizes Victoria's short-run, rather than long-run, market for plastic vials.
B) Victoria could be either a monopolistically competitive or a perfectly competitive firm.
C) Victoria should shut down temporarily.
D) Victoria should advertise more in order to increase the demand for plastic vials.
Q2) Assume that price exceeds average variable cost over the relevant range of demand. If a monopolistically competitive firm is producing at an output where marginal revenue is $111.11 and marginal cost is $118, then to maximize profits the firm should increase its output.
A)True
B)False
Q3) If a monopolistically competitive firm breaks even, the firm
A) is earning an accounting profit and will have to pay taxes on that profit.
B) is earning zero accounting and zero economic profit.
C) should advertise its product to stimulate demand.
D) should expand production.
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Chapter 14: Oligopoly: Firms in Less Competitive Markets
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Q1) Prices of PlayStation 4 game systems are similar at almost every large retailer and little price competition occurs among these retailers. An explanation for this is
A) retailers are all price takers.
B) retailers have lobbied state governments to allow them to collude legally to set the prices of certain products.
C) pricing PlayStation 4 game systems is a repeated game. Over a long period of time a cooperative equilibrium has been reached where retailers charge high prices for these systems.
D) retailers are in a prisoner's dilemma which causes them to all charge the same price for PlayStation 4 game systems.
Q2) Competition in the form of advertising, better customer service, or longer warranties can also reduce profits by raising costs.
A)True
B)False
Q3) What is the difference between explicit collusion and implicit collusion?
Q4) Why do economists refer to the pricing strategies of oligopoly firms as a prisoner's dilemma game?
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Chapter 15: Monopoly and Antitrust Policy
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Q1) The National Football League has long-term leases with the stadiums in major cities. Control of these stadiums is an entry barrier to a potential new football league.
A)True
B)False
Q2) A firm that has the ability to control to some degree the price of the product it sells A) is also able to dictate the quantity purchased.
B) faces a demand curve that is inelastic throughout the range of market demand. C) is a price maker.
D) faces a perfectly inelastic demand curve.
Q3) Refer to Figure 15-4. What is the amount of the monopoly's total revenue?
A) $21,600
B) $20,400
C) $19,740
D) $7,800
Q4) Explain whether a monopoly that maximizes profit will also be maximizing revenue and production.
Q5) What happens to a monopoly's revenue when it sells more units of its product?
Q6) Identify two ways by which the government controls monopolies?
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Chapter 16: Pricing Strategy
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Q1) The law of one price
A) states that consumers can only buy one good or service at a time.
B) is a law passed by Congress that prohibits firms from selling a product at two different prices in the same market at the same time.
C) states that consumers will pay any price for a product that has a perfectly inelastic demand curve.
D) states that identical products should sell for the same price everywhere.
Q2) Cost-plus pricing would be consistent with selecting the profit-maximizing price when
A) it results in a price that causes quantity sold to be where marginal revenue equals marginal cost.
B) a firm has no difficulty estimating its demand curve.
C) consumers value the product beyond its marginal cost.
D) the demand for the firm's product is unit-elastic.
Q3) The Clayton Act of 1936 outlawed price discrimination that reduced competition.
A)True
B)False
Q4) Why is it necessary for a firm that practices price discrimination be a price maker rather than a price taker?
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Chapter 17: The Markets for Labor and Other Factors of Production
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Q1) What is the difference between "straight-time pay," "commission pay," and "piece-rate pay"?
Q2) The income effect of a wage increase is observed when
A) the higher wage income causes workers to take more leisure and work less.
B) leisure's higher opportunity cost causes workers to take less leisure and work more.
C) the higher wage income causes workers to take less leisure and work more.
D) leisure's higher opportunity cost causes workers to take more leisure and work less.
Q3) If the labor supply is unchanged, an increase in the demand for labor will
A) increase the equilibrium wage and decrease the number of workers employed.
B) increase the equilibrium wage and increase the quantity of jobs demanded.
C) decrease the equilibrium wage and increase the number of workers employed.
D) increase the equilibrium wage and increase the number of workers employed.
Q4) Refer to Table 17-2. The firm represented in the diagram
A) has market power in the factor market.
B) has market power in the output market.
C) has market power in both the factor and product market.
D) has no market power in the factor or product market.
Q5) Why are there superstar baseball players but no superstar chiropractors?
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Chapter 18: Public Choice, Taxes, and the Distribution of Income
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Q1) The largest percentage of federal income tax revenue in the United States is paid by the
A) lowest income taxpayers.
B) middle income taxpayers.
C) highest income taxpayers.
D) All groups of taxpayers-low income, high income and middle income-pay the same percent of federal income taxes.
Q2) A common belief among political analysts is that someone running for his or her party's nomination for president of the United States must choose a different strategy once the nomination is secured. To be nominated, the candidate must appeal to voters from one party-Democrat or Republican-but in a general election a party's nominee must appeal to voters from both parties as well as independent voters. Which of the following offers the best explanation for this change in strategy?
A) the Arrow impossibility theorem
B) the voting paradox
C) the median voter theorem
D) rent seeking
Q3) Describe the main factors economists believe cause inequality of income.
Q4) What is rent seeking and how is it related to regulatory capture?
Page 20
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Chapter 19: GDP: Measuring Total Production and Income
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Q1) Refer to Table 19-25. Given the following information, calculate the rate of increase in the price level from 2012 to 2013. Use the percent change in the GDP deflator.
Q2) If the GDP deflator is less than 100, which will be higher: nominal GDP or real GDP? Why?
Q3) National income is defined as
A) gross national product plus transfer payments.
B) gross national product less retained earnings plus transfer payments. C) gross domestic product less retained earnings plus transfer payments. D) gross domestic product less the consumption of fixed capital.
Q4) Suppose that in 2013, the national income in the United States was $200 billion, depreciation was $15 billion, personal taxes were $20 billion, and transfer payments were $10 billion. Gross domestic product in 2013 is
A) $185 billion.
B) $215 billion.
C) $220 billion.
D) $245 billion.
Q5) Give two reasons why GDP does not reflect total production in an economy.
Q6) Why do we subtract import spending from total expenditures?
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Chapter 20: Unemployment and Inflation
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Q1) A lumberjack loses his job because timber cutting restrictions were imposed by the EPA to protect the spotted owl habitat. This lumberjack would be
A) frictionally unemployed.
B) cyclically unemployed.
C) structurally unemployed.
D) seasonally unemployed.
Q2) The GDP deflator is the best measure that reflects the prices of goods and services purchased by the typical household.
A)True
B)False
Q3) What is outlet bias?
A) the tendency for households to spend more money over time
B) the tendency for households to spend their money at discount stores as prices rise
C) the tendency for the quality of products to improve over time even though the CPI does not measure changes in quality
D) the tendency for consumers to purchase newer, more technologically advanced products even though they have higher prices
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Chapter 21: Economic Growth, the Financial System, and Business Cycles
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Q1) Refer to Figure 21-1. Which of the following is consistent with the graph depicted above?
A) An expected recession decreases the profitability of new investment.
B) Technological change increases the profitability of new investment.
C) The government runs a budget surplus.
D) Households become spendthrifts and begin to save less.
Q2) Using the market for loanable funds, which of the following has the potential to raise the real interest rate?
A) an increase in the demand for loanable funds
B) an increase in the quantity of loanable funds demanded
C) an increase in the supply of loanable funds
D) an increase in the quantity of loanable funds supplied
Q3) Economists have not found a way to predict when recessions will begin and end. A)True B)False
Q4) How are unemployment, inflation, and the business cycle related?
Q5) What is "human capital," and how does human capital affect labor productivity and economic growth?
Q7) Explain why the demand curve for loanable funds has a negative slope. Page 23
Q6) Outline the various actions the government sector could take to promote growth.
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Chapter 22: Long-Run Economic Growth: Sources and Policies
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Q1) Which of the following best explains why productivity growth in the United States has been faster than in other leading industrialized nations?
A) There are fewer government regulations in the United States regarding the way firms can hire and fire workers.
B) The financial systems of foreign countries are generally more efficient than those in the United States.
C) European countries have more flexible policies regarding the number of hours employees are permitted to work.
D) Job mobility in the United States is more restricted than it is in many foreign countries.
Q2) Refer to Figure 22-4. The movement from E to B to D in the figure above illustrates
A) an improvement in technology.
B) a decline in capital per worker.
C) diminishing returns to capital.
D) diminishing returns to labor.
Q3) How do government policies that enforce property rights affect economic growth?
Q4) List four types of government policies which can aid economic growth.
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Chapter 23: Aggregate Expenditure and Output in the Short Run
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Q1) If an increase in autonomous consumption spending of $25 million results in a $100 million increase in equilibrium real GDP, then
A) the MPC is 0.25.
B) the MPC is 0.75.
C) the MPC is 0.8.
D) the MPC is 2.5.
Q2) Refer to Table 23-3. Given the consumption schedule in the table above, the marginal propensity to save is
A) 0.1.
B) 0.4.
C) 0.7.
D) 0.9.
Q3) From 1983-2013, net exports for the United States
A) grew and then declined.
B) were negative.
C) were positive.
D) increased as exports rose above imports.
Q4) The formula for the multiplier is (1 - MPC).
A)True
B)False
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Chapter 24: Aggregate Demand and Aggregate Supply Analysis
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Q1) All of the following are reasons why the wages of workers and the prices of inputs rise more slowly than the prices of final goods and services except A) unions are successful in pushing up wages.
B) firms are often slow to adjust wages.
C) contracts make prices and wages "sticky."
D) menu costs make some prices sticky.
Q2) When people became less concerned with the underlying value of their houses and instead focused on the expectations of the prices of their houses increasing, ________ occurred.
A) stagflation
B) an automatic destabilizer
C) a housing bubble
D) a supply shock
Q3) A supply shock causes the long-run aggregate supply curve to shift left, decreasing the price level.
A)True
B)False
Q4) Why are the long-run effects of an increase in aggregate demand on price and output different from the short-run effects?
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Chapter 25: Money, Banks, and the Federal Reserve System
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Q1) If the rate of growth in real GDP exceeds the rate of growth in the money supply, the quantity theory of money predicts a price deflation.
A)True
B)False
Q2) Refer to Scenario 25-1. M1 in this simple economy equals
A) $1,000.
B) $2,000.
C) $3,000.
D) $8,000.
Q3) If people speculate that a run on one bank will cause a run on all banks in the financial system, and this speculation proves accurate, then the financial system would experience what is known as a
A) commodity crisis.
B) securitization meltdown.
C) bank panic.
D) institutional death spiral.
Q4) According to monetary theory, if the money supply is growing at a rate of 5 percent, real GDP is growing at a rate of 2 percent, and velocity is constant, what will the inflation rate be?
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Chapter 26: Monetary Policy
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Q1) According to the Taylor rule, the Fed should set the target for the federal funds rate equal to the sum of the equilibrium real federal funds rate, the current inflation rate, one-half times the ________, and one-half times the ________.
A) interest rate gap; inflation gap
B) interest rate gap; output gap
C) inflation gap; output gap
D) unemployment gap; government-spending gap
Q2) If the Fed pursues expansionary monetary policy then
A) the money supply will decrease, interest rates will rise and GDP will fall.
B) the money supply will decrease, interest rates will fall and GDP will fall.
C) the money supply will increase, interest rates will rise and GDP will rise.
D) the money supply will increase, interest rates will fall and GDP will rise.
Q3) Rising nominal GDP will increase the demand for money and short-term interest rates.
A)True
B)False
Q4) What actions should the Fed take if it believes the economy is about to experience a high rate of inflation?
Q5) List the Fed's four main monetary goals.
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Chapter 27: Fiscal Policy
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Q1) Suppose Political Party A proposes a tax cut on business income to stimulate the economy. Political Party B opposes the tax cut on business income asserting that it would only help businesses, not the average working man and woman. If you were hired as an economist for Political Party A, explain how the tax cut on business income would help the average working man and woman.
Q2) An increase in government purchases will increase aggregate demand because A) government expenditures are a component of aggregate demand. B) consumption expenditures are a component of aggregate demand. C) the decline in the price level will increase demand. D) the decline in the interest rate will increase demand.
Q3) Show the impact of tax reduction and simplification using the dynamic aggregate demand and aggregate supply model. Clearly show and identify the impact of the tax change. Assume that aggregate demand and short-run aggregate supply shift as they typically do in the dynamic model. Show what happens to the price level and real GDP because of the tax change.
Q4) An increase in government spending will force an appreciation of the dollar, which causes net exports to fall.
A)True
B)False
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Chapter 28: Inflation, Unemployment, and Federal Reserve Policy
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Q1) The experience of Paul Volcker's fight against inflation during the late 1970s and early 1980s indicates that firms and workers may have
A) had adaptive expectations.
B) had rational expectations but didn't trust Fed announcements.
C) preferred high unemployment to high inflation.
D) Both A and B are correct answers.
Q2) Refer to Figure 28-2. The nonaccelerating inflation rate of unemployment, or NAIRU, is associated with which point rate in the figure above?
A) A
B) B
C) C
D) all of the above
Q3) According to real business cycle models,
A) the long-run Phillips curve is negatively sloped.
B) the economy is normally operating below the natural rate of unemployment. C) unexpected changes in monetary policy are the major source of fluctuations in real GDP.
D) the economy is normally at potential GDP.
Q4) Why is the credibility of the Fed's policy announcements particularly important?
Page 31
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Chapter 29: Macroeconomics in an Open Economy
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Q1) A real appreciation of the dollar is caused by either a nominal appreciation of the dollar, a rise in the foreign price level, or a fall in the U.S. price level.
A)True
B)False
Q2) When the United States sends money to Indonesia to help tsunami survivors, in what account is this transaction recorded?
A) the financial account
B) the capital account
C) the current account
D) the foreign exchange account
Q3) The recession of 2007-2009 decreased the demand for imports in Japan, which caused the ________ curve for the yen to ________, increasing the exchange rate and the value of the yen.
A) supply; right
B) supply; left
C) demand; right
D) demand; left
Q4) Explain why economies with financial account surpluses usually have current account deficits.
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Chapter 30: The International Financial System
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Q1) Refer to Figure 30-3. If the Thai government pegs its currency to the dollar at a value above $.03/baht, we would say the currency is
A) undervalued.
B) overvalued.
C) parity valued.
D) equilibrium valued.
Q2) A Big Mac costs $4.56 in the United States and 9.2 zlotys in Poland. If the exchange rate is 3 zlotys per dollar, purchasing power parity predicts that
A) the dollar will appreciate as the demand for dollars rises in the long run.
B) the dollar will appreciate as the supply of dollars falls in the long run.
C) the dollar will depreciate as the demand for dollars falls in the long run.
D) the dollar will depreciate as the supply of dollars rises in the long run.
Q3) Under the Bretton Woods system, the World Trade Organization (WTO) provided foreign currency loans to central banks and approved adjustments to the agreed upon fixed exchange rates.
A)True
B)False
Q4) Which aspects of globalization help to increase growth in the world economy?
Q5) Briefly describe how the Bretton Woods system operated.
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