Grade 8 Global Economy Quiz: Test Your Understanding

📚 Quick Study Guide

• 🌍 Globalization: The increasing interconnectedness of countries through trade, investment, migration, and technology.
• 🤝 International Trade: The exchange of goods and services between countries. Key concepts include exports (selling goods to other countries) and imports (buying goods from other countries).
• 📈 Economic Interdependence: Countries relying on each other for economic growth and stability. A downturn in one country can affect others.
• 💰 Foreign Investment: Investments made by companies and individuals in foreign countries. This can include building factories or buying stocks.
• ⚖️ Exchange Rates: The value of one currency in terms of another. Exchange rates affect the price of imports and exports.
• 🏭 Multinational Corporations (MNCs): Companies that operate in multiple countries, playing a significant role in the global economy.
• 📊 Gross Domestic Product (GDP): The total value of goods and services produced in a country in a year. A key indicator of economic performance.

📝 Practice Quiz

1. What is globalization?
   1. A) The process of countries becoming more isolated.
   2. B) The increasing interconnectedness of countries through trade, investment, and migration.
   3. C) A type of local farming.
   4. D) A system where each country is self-sufficient.
2. What is the difference between imports and exports?
   1. A) Imports are goods sold to other countries, while exports are goods bought from other countries.
   2. B) Exports are goods sold to other countries, while imports are goods bought from other countries.
   3. C) Both terms refer to the same thing: goods traded internationally.
   4. D) Imports are goods produced locally, while exports are goods produced abroad.
3. What does economic interdependence mean?
   1. A) Countries relying on each other for economic growth and stability.
   2. B) Countries being completely independent in their economic activities.
   3. C) A system where countries compete to be the strongest economy.
   4. D) Countries having no economic relations with each other.
4. What is foreign investment?
   1. A) Money spent by tourists in a foreign country.
   2. B) Investments made by companies and individuals in foreign countries.
   3. C) Government spending on infrastructure projects.
   4. D) Charitable donations to international organizations.
5. What are exchange rates?
   1. A) The price of goods in international markets.
   2. B) The value of one currency in terms of another.
   3. C) The taxes on imported goods.
   4. D) The interest rates charged by international banks.
6. What are Multinational Corporations (MNCs)?
   1. A) Companies that only operate in their home country.
   2. B) Companies that operate in multiple countries.
   3. C) Small local businesses.
   4. D) Government-owned enterprises.
7. What is Gross Domestic Product (GDP)?
   1. A) The total value of goods and services imported into a country.
   2. B) The total value of goods and services exported from a country.
   3. C) The total value of goods and services produced in a country in a year.
   4. D) The total amount of money in circulation in a country.