Fundamentals of Economy
Economy is the science that study
What is the formula of GDP?
GDP= C + I + G + (E-I)
What are the elements measured in the Human Development Index (HDI)?
Life expectancy, education (schooling years) and per capita income
In the context of economy, what is the interest?
Is the value of the availability of money.
How many members does the OECD have?
38
Economy is based in the fundamental that resources are ____________
Finite
Income inequality inside a country
What element is included in the Happy Planet Index to consider sustainability?
Ecological footprint
Which organization is a mediator in economic conflict and adjust trade agreements between member countries?
World Trade Organization (WTO)
Which institution is likely to lend money to a development project such as build a comercial port.
World bank
Inter American Development Bank
New Development Bank
(wrong answers: WTO, IMF, OECD)
Economy is based in the fundamental that human needs/wants are ____________
Infinite
What is inflation?
The increase in general price levels of goods and services in an economy over a specific period or time.
Which indicator compares the relative value of currencies based on the cost of a STANDARIZED basket of goods and services in different countries.
The Purchasing Power Parity exchange rate
Which are the tools that a central bank has in order to control the economy of a country?
Print money
Set the reference exchange rate
Buy or sell governmental bonds or securities
Mexico is not a member of which institution studied at class?
New Development bank
What happened to the price of a good when the demand goes down?
It decreases
What happens with the value of a currency rate of a currency that experience a high inflation rate?
Its value decreases.
An increase in GDP per capita is a sign of improvement in the well being of people inside a country?
NOOOOOOOO
Who take decisions in the International Monetary Fund?
The executive board, composed by 24 executive directors.
Which institution was created first? Inter-American Development Bank, World Bank, New Development Bank?
World Bank
What happened to the price of a good when the offer goes down?
It increases
If a trade balance of a country increases (trade surplus), its GDP would increase?
YESSSSSSSSS
Name two indicators that measures economic development.
Happy Planet Index, Human Development Index
(With proper justification: Gini)
What is an example of expansive fiscal policy?
Tax cuts
Increase in government spending
What is an example of contractionary monetary policy?
Increase of interest rate
Selling government bonds or securities