JOSEFINA H.

CERILLES STATE COLLEGE – TAMBULIG CAMPUS

THE CONTEMPORARY WORLD, 1st Semester, S.Y. 2022 - 2023
THE GLOBAL ECONOMY (Summative Test)

NAME: ___________________________ COURSE & YEAR: _____________ SCORE: _____

Test I – Multiple Choice: Encircle the letter of your answer.

1. Which of the following is the International Monetary Fund’s definition for global economy?
a. It is characterized by the increasing integration of economies around the world.
b. It refers to all economic activities which are conducted both within and between nations.
c. It is a system of trade around the world that has developed as the result of globalization.
d. It refers to interconnected worldwide economic activities that take place between multiple countries.
2. Which of the following is the United Nations’ definition for global economy?
a. It is characterized by the increasing integration of economies around the world.
b. It refers to all economic activities which are conducted both within and between nations.
c. It is a system of trade around the world that has developed as the result of globalization.
d. It refers to interconnected worldwide economic activities that take place between multiple countries.
3. Three fundamental factors have affected the process of economic globalization EXCEPT
a. Improvements in the technology of transportation and communication.
b. Public policies have significantly influenced the character and pace of economic integration.
c. Simultaneous appearance in an economy of slow growth, high unemployment, and rising prices.
d. Individuals and societies have favoured taking advantage of the opportunities provided by declining
costs of transportation and communication through increasing economic integration.
4. It is a network of pathways in the ancient world that spanned from China to what is now the Middle East
and to Europe.
a. Silk Road b. Galleon Trade c. Gold Standard d. Fiat Currency
5. In what year did the trade system of the Gold Standard end?
a. 1911 b. 1914 c. 1917 d. 1920
6. During the Uruguay Round, the members of the GATT reached to an agreement to establish WTO?
a. 1911 b. 1914 c. 1917 d. 1920
7. How many representatives from various countries became member upon the establishment of GATT?
a. 23 b. 38 c. 44 d. 123
8. How many allied nations were present when deliberation for the Bretton Woods System started?
a. 23 b. 38 c. 44 d. 123
9. This is the current headquarters for the World Trade Organization (WTO).
a. Acapulco, Mexico c. Manila, Philippines
b. Geneva, Switzerland d. Washington DC, USA
10. Which of the following is the list of countries that are original founding members of the OPEC?
a. Iran, Iraq, Kuwait, Saudi Arabia, United Arab Emirates
b. Iran, Iraq, Saudi Arabia, United Arab Emirates, Venezuela
c. Iran, Iraq, Kuwait, Saudi Arabia, Venezuela
d. Iran, Iraq, Kuwait, United Arab Emirates, Venezuela
11. This organization aims to reduce tariffs and other hindrances to free trade.
a. GATT b. OECD c. OPEC d. NAFTA
12. This organization was formed because member countries wanted to increase the price of oil, which in
the past had relatively low price and had failed in keeping up with inflation.
b. GATT b. OECD c. OPEC d. NAFTA
13. The following are features of mercantilism, EXCEPT
a. The bases of the nation’s wealth are its gold and silver reserves.
b. It imposes high policies and restricts exportation.
c. It promotes accumulation of foreign currency reserves.
d. It supports granting of state monopolies.
14. The system of Gold Standard trading collapsed because of the following reasons, EXCEPT
a. World War I b. World War II c. Great Depression d. Mercantilism
15. This commodity, which is one of the commonly traded product in the Silk Road, is a textile fabric
derived from the sheep’s coat which was processed to make blankets, carpets and thick clothing.
a. ceramic b. porcelain c. silk d. wool

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Test II – True or False: Write your answer on the space provided before each number.

_______ 1. Dennis O. Flynn and Arturo Giraldez trace real globalization back to 1571 with the establishment
of Galleon Trade.
_______ 2. A fiat currency is a type of currency issued by IMF and is not backed by physical commodities.
_______ 3. The Great Depression was a severe worldwide economic crisis between 1929 and 1939.
_______ 4. One of the most profitable products traded through the Silk Road was silk, hence its name.
_______ 5. Mercantilism promotes imports and restrict exports.
_______ 6. Mexico is the third and last member of the NAFTA.
_______ 7. IBRD served as a lender or a last resort for countries which needed financial assistance.
_______ 8. The Bretton Woods System embraces the principle of global Keynesianism.
_______ 9. The OPEC currently has 13 member nations.
_______ 10. In the time of the Great Depression, there is a decrese in tax and tariff, low prices of commodities,
and high level of employment.

Test III – Identification

A. Shade the box that relates to the given dates and indicate the proper organization referred by it.

1. July 1, 1944 is the date when _____________________ was □ established □

abolished.
2. January 1, 1948 is the date when _____________________ was □ established □
abolished.
3. September 14, 1960 is the date when _____________________ was □ established □
abolished.
4. January 1, 1994 is the date when _____________________ was □ established □
abolished.
5. January 1, 1995 is the date when _____________________ was □ established □
abolished.

B. Identify the right terminology that describes the given items. Write your answer on the space provided.

_____________ 1. It is a system of global trade which imposed high tariffs with multiple restrictions.
_____________ 2. He was the US President at the beginning of the Great Depression, partly blamed for it
because of his inability to mitigate the negative economic consequences arising from it.
_____________ 3. One of the key elements of the Bretton Woods System is the expression of currency terms
of gold. How much in US dollars ($) is the equivalent value for an ounce of gold?
_____________ 4. It is the current name of the International Bank for Reconstruction and Development
(IBRD).
_____________ 5. He believed that economic crises occur not when a country does not have enough money,
but when money is not being spent, and thereby not moving.

C. Provide the name of the international organizations represented by the following acronyms.

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1. IMF ________________________________________________________________
2. GATT ________________________________________________________________
3. OECD ________________________________________________________________
4. OPEC ________________________________________________________________
5. NAFTA ________________________________________________________________

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