1. Most modern democratic states practice pure democracy in which citizens are directly involved in decision making.

• true
• false

1. GDP allows a more direct comparison of living standards in different countries than other measures.

• true
• false

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question.

1. ________ refers to the shift toward a more integrated and interdependent world economy.
   1. Outsourcing
   2. International marketing
   3. Privatization
   4. Globalization

1. In 2008 and 2009, the ________ became the forum through which major nations attempted to launch a coordinated policy response to the global financial crisis, which started in America.
   1. United Nations
   2. Group of Seven (G7)
   3. Group of Twenty (G20)
   4. World Trade Organization

1. Which factor has contributed to the globalization of markets?
   1. a decrease in foreign direct investment
   2. global convergence of consumer tastes and preferences
   3. an increase in cross-border barriers to trade
   4. the trend to separate a homogeneous market into separate national markets

1. Globalization has resulted in
   1. less interdependence between national economies.
   2. an increase in the use of outsourcing.
   3. a collective material culture becoming more diverse.
   4. increasing barriers to cross-border trade.