MCQ Practice 1:
1. Which of the following is a macro
factor underlying the trend toward
greater globalization?
2. States that limit the freedom of
religious expression with laws based
on religious principles most likely
trademark
follow the political system of
3. Initech Incorporated, a multinational
giant, runs a number of diversified
businesses. Which of the following
can be considered as an intellectual
property of the firm?
4. Which of the following grants the
inventor of a new product or process
exclusive rights for a defined period to
the manufacture, use, or sale of that
invention?
A. Rise of communism across the globe
B. Increase in nationalization of private
organizations
C. Increase in diversity in consumer tastes
and preferences
D. Increase in trade regulations across the
globe
E. Dramatic developments in information
processing and other technologies
A. theocratic totalitarianism.
B. communist totalitarianism.
C. right-wing totalitarianism.
D. pure democracy.
E. representative democracy.
A. income arising from renting land and
buildings
B. profits arising from the sale of agricultural
crops
C. interest earned by lending capital to other
firms
D. innovations and capabilities, and skills of
the employees
E. investments made in raw materials and
machinery
A. copyright
B. trademark nhãn hiệu
C. patent bằng sáng chế
D. warranty bảo hành
E. service mark tên thương hiệu
Patents: give the inventor exclusive rights to the manufacture,
use, or sale of that invention
Copyrights: exclusive legal rights of authors, composers,
playwrights, artists, and publishers to publish and dispose of
their work as they see fit
Trademarks: designs and names, often officially registered, by
which merchants or manufacturers designate and differentiate
their products
5. Which of the following refers to an A. barter
economic system in which the
interaction of supply and demand B. command
determines the quantity in which
goods and services are produced? C. market

D. regulated

E. centrally planned
6. Moore's law predicts, that every 18 A. True
months, the power of microprocessor B. False
technology decreases, while its cost of
production increases.
7. In what type of economy are certain A. command
sectors of the economy left to private
ownership and free market B. pure market
mechanisms, while in other sectors
there is significant state ownership and C. mixed
government planning?
D. centrally planned

E. laissez-faire
8. The gross national income (GNI) per A. True
capita comes much closer to Amartya B. False
Sen's conception of how development
should be measured than narrow
economic measures such as Human
Development Index (HDI).
9. ABC Toys, a U.S.-based toy A. foreign direct investment.
manufacturer, has set up a B. international trade.
manufacturing plant in Hong Kong. C. exporting.
This is an example of D. global rivalry.
E. the globalization of markets.
10. The bundle of legal rights over the use A. civil
to which a resource is put and over the
use made of any income that may be B. political
derived from that resource are called
what type of rights? C. shareholder

D. property

E. public
11. Which of the following is a form of
government in which one person or
political party exercises absolute
control over all spheres of human life
and prohibits opposing political
parties?
12. Royal Teas, a U.K.-based company
employing just 30 people worldwide,
generates $1.5 million in revenues of
which 60 percent comes from exports
to Asian countries. In this context,
Royal Teas is most likely classified as
a
13. As a result of globalization, we have
been moving toward a world in which
national economies are relatively self-
contained entities.
14. Which of the following is most likely
to be advocated by individualism?
15. Which of the following is broadly
defined as the development of new
products, processes, organizations,
management practices, and strategies?
A. capitalism
B. totalitarianism
C. pure democracy
D. republicanism
E. representative democracy
A. large domestic firm.
B. mini-multinational firm.
C. greenfield firm.
D. foreign firm.
E. multinational giant.
A. True
B. False
A. Communal property is more highly
productive than private property.
B. Public good should be preferred over
private profit.
C. State-owned companies should
monopolize certain industries.
D. The welfare of society is best served by
some collective body such as government.
E. Free market ideologies should be followed
for achieving better standards of living.
A. privatization
B. economic deregulation reduces the restrictions in a particular industry to
improve business operations and increase competition
C. boundary spanning sự kết nối hay sự bắc cầu
D. innovation
E. benchmarking chuẩn đối sánh
16. The country of Baloonistan is
classified as having low human
development (the quality of life is
poor). This means its HDI is
A. a score of less than 0.5 on the HDI scale
B. Around 6.0
C. Greater than 5.0 but less than 7.0

D. Around 80

E. In the bottom 60 percentile

17. In the country of Normian Republic, A. individualism
an individual's right to own land is
restricted to a large extent on the basis B. democracy
that it runs counter to "the common
good." In this context, which of the C. collectivism
following is most likely to be the
political system adopted by Normian D. capitalism
Republic?
E. protectionism
18. Bich Do, a Vietnamese fashion A. foreign direct investment.
designer, sells her merchandise by B. globalization of production.
exporting it to the United States, C. international trade.
United Kingdom, and Brazil. D. multinational enterprise.
According to this information, E. outsourcing.
Michelle is most likely involved in
19. The Cedian government believes that A. totalitarianism.
its citizens should have complete
freedom in their economic and B. socialism.
political pursuits, and the Cedian
ideology is "private profit over public C. individualism.
good." In this context, it can be said
that Cedia most likely follows the D. communism.
philosophy of
E. Marxism.
20. Which of the following best A. Sam, an employee at a supermarket, is
exemplifies an entrepreneur? solely responsible for all the purchases and
sales at the grocery department.

B. Joe recycles old household articles to build

phones, radios, and other things for his
personal use.

C. Max makes his living by investing in small

companies that have the potential to grow.

D. Javier purchased an invention made by his

friend to start a company that processes
plastic bags into synthetic cloth.

E. Ryan invented an anti-aging formulation

and sold it to a major pharmaceutical firm.
21. Which of the following creates an A. market economy
unfavorable environment for
innovations and entrepreneurship? B. economic freedom

C. state monopoly in production

D. privatization

E. strong legal protection of property rights

22. Foreign direct investment (FDI) A. True
occurs when a firm invests resources B. False
in business activities outside its home
country.
23. Entrepreneurial individuals have fewer A. True
economic incentives to develop B. False
valuable new innovations in market
economies than in planned
economies.
24. Judges under a civil law system have A. True Common law: based on tradition, precedent, and custom
less flexibility than those under a B. False Civil law: based on detailed set of laws organized into codes

common law system

25. Silver Fire Electric Inc., a U.S.-based A. greenfield
company, has productive activities in B. universal
more than two countries. As a result, it C. private
would be most appropriate to refer to D. multinational
Silver Fire Electric as what type of E. public
enterprise
26. Karl Marx advocated state ownership A. True
of the basic means of production, B. False
 distribution, and exchange (i.e.,
businesses).
27. Patents, copyrights, and trademarks A. intellectual
establish ownership rights over what
type of property? B. real

C. tangible

D. non-performing

E. stolen
28. Which of the following creates an A. market economy Many state-owned enterprises failed to
succeed, and many nations implemented
unfavorable environment for innovations B. economic freedom privatization programs

and entrepreneurship? C. state monopoly in production

D. privatization
E. strong legal protection of property rights
29. Why was the World Bank set up? A. to preserve peace through international
cooperation
The World Bank
Promotes economic development using low-interest loans B. to promote economic development
C. to maintain order in the international
monetary system
D. to formulate a coordinated policy response
to financial crises
E. to police the world trading system
30. In most democratic states, those who A. True
question the right of the rulers to rule B. False
find themselves imprisoned, or worse.
31. In the early twentieth century, the A. communists.
socialist ideology split into two broad
camps and the people who believed B. capitalists.
that socialism could be achieved only
through violent revolution and C. democrats.
totalitarian dictatorship were referred
to as D. individualists.

E. anarchists.
32. In both China and India, the shift A. True
toward a command-based economic B. False
system has produced large gains both China and India have achieved high growth rates despite relatively weak
property rights regimes and high levels of corruption. In both countries, the shift
despite weak property rights and toward a market-based economic system has produced large gains despite
weak property rights and endemic corruption.
endemic corruption
 33. Which of the following is based on
three measures: life expectancy at
birth, educational attainment, and
average incomes based on PPP
A. Human Development Index
B. Gross National Income
Human Development Index based on
life expectancy, education attainment,
and whether average incomes are
sufficient to meet the basic needs of
life in a country

estimates? C. Gross Domestic Product

D. Cost of Living Index

E. Cash Reserve Ratio

34. The Boldovian government took Sea A. mixed Governments take over troubled firms considered vital to
national interests
Lion Inc., a domestic, private
shipbuilding firm, into state ownership B. market-based
A market-based economic system is likely in countries where
to save the company from bankruptcy. individual goals are given primacy over collective goals
In a pure command economy the goods and services that
However, the other private C. command a country produces, the quantity in which they are
produced, and the price at which they are sold are all
competitors in the shipbuilding planned by the government
industry were enraged by this decision D. laissez-faire
of the government. As a result, the
government had to reduce the tax E. communist
burden on all other private
shipbuilding firms so that both the
state-owned enterprise and private
firms could co-exist. According to this
information, Boldovia has most likely
adopted what type of economy?
35. In 2014, if the GNI per capita of India A. China.
was $1,570 and its PPP per capita was
$5,630, this means that the cost of B. Great Britain.
living in India was lower than the cost
of living in C. Germany.

D. the United States.

E. The rest of the world.

36. What is the shift toward a more . International trade
integrated and interdependent world B. Foreign direct investment
economy called? C. Globalization
Globalization refers to the trend towards a more integrated and D. Moore's Law
interdependent (phụ thuộc lẫn nhau) world economy
E. Containerization
37. Which of the following creates an A. communism
environment that is conducive to
product and process innovations and B. centrally planned economy
to entrepreneurial activity?
C. privatization

D. command economy

E. lack of strong property rights

38. Which of the following legal systems A. common law
is most likely to be based on tradition,
precedent, and custom? B. civil law

C. autocracy law

D. monarchy law

E. universal law
39. The Human Development Index A. basic health care
comes close to Amartya Sen's
conception of how development B. political freedom
should be measured, although which
of the following, suggested by Sen in C. educational attainment
his thesis, is not included in the
index? D. basic average income

E. life expectancy at birth

40. Richard purchased a computer for A. product liability.
$600 in 2015. Compared to the $900 B. property rights.
computer that he had purchased back C. Moore's law.
in 2011, the new one seems to be D. purchasing power parity.
more efficient in terms of the price he E. sustainable strategies.
has paid and the power of the
microprocessor technology. This is
best explained by
41. Which of the following refers to the A. Globalization of markets
sourcing of goods and services from B. Containerization of production
locations around the globe to take C. Dispersal of production
advantage of national differences in D. Globalization of production
the cost and quality of factors such as E. Industrialization of markets
labor, energy, land, and capital?

The Globalization of Production --> Sourcing of goods and services from locations around the globe to take advantage
of national differences in the cost and quality of factors of production (labor energy, land, and capital)
42. Modern socialism traces its A. Aristotle.
intellectual roots to
B. David Hume.

C. Karl Marx.

D. Adam Smith.

E. Milton Friedman.