Trade 1
Trade 2
TCO 1-4
TCO 5-8
TCO 9-10
100
Our largest trade deficit is with __________. A) Japan B) Canada C) China D) Mexico E) Germany
What is C) China?
100
In recent years we bought ___ from foreigners than they bought from us, and we invested ____ in foreign countries than foreigners invested in the United States. A) more, more B) less, less C) less, more D) more, less
What is D) more, less?
100
The following statements about the U.S. economic problem is correct: A) The U.S. economic problem is limited to poverty. B) Scarcity is no longer an economic problem in the U.S. C) If we all had more money there would be less scarce resources. D) None is true.
What is None is true? Slavin text in ch.2 on p.26
100
Demand-pull inflation is often summed up as ... A) too many dollars chasing too few goods. B) the wage-price spiral. C) profit-push inflation. D) supply-side cost shock inflation.
What is A) too many dollars chasing too few goods? Slavin text in ch.10 on pp.237-239
100
Today international finance is based on... Points: A) the gold standard B) mainly a relatively free-floating exchange rate system C) fixed rates of exchange D) none of the above
What is B) mainly a relatively free-floating exchange rate system? Slavin text in ch.31 on pp.795-799
200
The Chinese economic expansion since the early 1980s and the Japanese economic expansion from the late 1940s through the 1980s were __________. A) virtually identical B) both dependent on the American market C) based in the economic principles of Karl Marx D) based on closing their domestic markets to American goods and services
What is B) both dependent on the American market?
200
The world's leading debtor nation is ________. A) Argentina B) Brazil C) Mexico D) the United States
What is D) the United States?
200
The effect of a decrease in the PRICE of home computers, other things constant, is likely to be best represented by the following: A) a leftward shift of the demand curve. B) an increase in the Quantity demanded (Qd) of home computers C) a rightward shift in the demand curve. D) a decrease in the Quantity demanded (Qd) of home computers E) a rightward shift in the supply curve.
What is B) an increase in the Quantity demanded (Qd) of home computers? Slavin text in ch.17 on pp.416-417
200
Supply-side economists maintain that decreases in tax rates increase: A) aggregate demand B) aggregate supply C) price level D) national budget
What is B) aggregate supply? Slavin text in ch.11 on pp.255-260
200
If the dollar price gets "weaker," ____________. A) the U.S. trade deficit will rise. B) the U.S. trade deficit will fall. C) the U.S. trade deficit will be unchanged. D) None of the above necessarily happens.
What is B) the U.S. trade deficit will fall? Slavin text in ch.32 on pp.797-799
300
Of these three choices--tariffs, quotas and free trade-- economists like _______ the most and _______ the least. A) tariffs, quotas B) tariffs, free trade C) free trade, tariffs D) free trade, quotas E) quotas, free trade F) quotas, tariffs
What is D) free trade, quotas?
300
Today international finance is based on ______. A) the gold standard B) mainly a relatively free-floating exchange rate system C) fixed rates of exchange
What is B) mainly a relatively free-floating exchange rate system?
300
The 'kinked demand' curve is an attempt to explain the behavior of oligopolies. It suggests: A) Competitors will raise their prices as your firm raises your prices. B) Competitors will never adjust their prices when your firm lowers your prices. C) Competitors will lower their prices when your firm raises your prices. D) Competitors will lower their prices when your firm lowers your prices.
What is Competitors will lower their prices when your firm lowers your prices? Slavin text in ch.24 on pp.605-607
300
A major advantage of 'automatic stabilizers' is that: A) they automatically produce surpluses during recessions and deficits during inflation. B) they help stabilize the economy without having any effect on the personal income. C) they simultaneously stabilize the inflation and reduce the absolute size of the public debt. D) they require no legislative action by Congress to be made effective.
What is D) they require no legislative action by Congress to be made effective? Slavin text in ch.12 on pp.282-284
300
Under floating exchange rates, the exchange value of the U.S. dollar is determined by ______________. A) The Federal Reserve B) The International Monetary Fund C) Supply and Demand for dollar in Foreign Markets D) Negotiations among central banks of major industrialized nations
What is C) Supply and Demand for dollar in Foreign Markets? Slavin text in ch.31 on pp.795-799
400
________ regularly conterfeits American goods and services, a practice which costs American industry over $200 billion a year. A) Mexico B) Canada C) China D) Japan
What is C) China?
400
According to the "Big Mac Index," __________. A) the U.S. dollar is too highly valued relative to virtually all other currencies B) the U.S. dollar is valued too low relative to virtually all other currencies C) you will be able to buy a Big Mac much more cheaply in China or Russian than in the United States D) you will have to pay much more for a Big Mac in China or Russia than you would in the United States
What is C) you will be able to buy a Big Mac much more cheaply in China or Russian than in the United States?
400
The largest sector of the U.S. GDP is: A) investment B) government spending C) net exports D) consumption
What is D) consumption? Slavin text in ch.9 on p.191
400
U.S. Federal Reserve's Monetary policy would not include: A) increasing interest rates to control the money supply B) a policy directed toward controlling credit C) reducing the money supply in an effort to control inflation D) increasing tax rates in an effort to control inflation E) a Federal Reserve intervention in the economy
What is D) increasing tax rates in an effort to control inflation? Slavin text in ch.14 on pp.340-349
400
Government spending can be financed by all of the following "except" __________. A) personal income taxes B) investment spending C) government borrowing D) money creation E) excise taxes
What is B) investment spending? Slavin text in ch.12 on pp.292-297
500
The following would be the most accurate statement with respect to our chemical industry: A) It is on the decline and now contributes to our balance of trade deficit B) It is large and growing C) It generally provides a trade surplus of about $20 billion a year D) It will almost completely disappear by the year 2015
What is A) It is on the decline and now contributes to our balance of trade deficit?
500
One of the following statements below is the most accurate: A) As a percentage of GDP, the United States has the highest current account surplus of any nation. B) As a percentage of GDP, the United States has the highest current account deficit of any nation C) As a percentage of GDP, our current account deficit is roughly the same as it was 10 years ago D) Our current account deficit is rising at an unsustainable pace
What is D) Our current account deficit is rising at an unsustainable pace?
500
Multiple-counting is avoided by: A) counting intermediate products only once B) including only final products in our calculation C) including both intermediate and final products, but only once D) none of the above
What is B) including only final products in our calculation? Slavin text in ch.9 on pp.193-194
500
'Comparative advantage' is based on... A) "gains from free trade" B) idea of economic superiority. C) absolute costs of producing goods in different countries. D) relative opportunity costs of producing goods in different countries.
What is D) relative opportunity costs of producing goods in different countries? Slavin text in ch.31 on pp.762-765
500
The effect of big tax cuts on the real GDP of a weak economy is ______________. A) strengthened by the crowding-out effect B) weakened by the crowding-out effect C) reinforced by reducing MPC (Marginal Propensity to Consume) D) none of the above
What is B) weakened by the crowding-out effect? Slavin text in ch.12 on pp.292-294
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