Left column
True or false: CPI takes into account product improvements
False, that's why CPi is an imperfect indicator
When transaction costs decrease between two countries, what is the most likely economic outcome regarding whether or not trade increases or decreases?
Trade increases (Less barriers to trade means more trade will happen)
The US imports lots of coffee from Asia and South America, the US could theoretically make greenhouses to grow coffee beans here but chooses to import the coffee instead. Why does the US do this?
Opportunity cost of importing the coffee is cheaper than growing the coffee ourselves and building greenhouses for them
What is it called when a company in one country hires workers in another country to handle customer support, while keeping its production facilities in it's "home" country.?
Outsourcing
Tariffs are designed to help protect domestic businesses by artificially making foreign imports more expensive. If tariffs are implemented on foreign candies, how will that affect American candy buyers?
The price of candy will increase (also, candy importers may lose their jobs and/or profits)
(Blank) unemployment is when a job is no longer needed or obsolete
Structural unemployment
The US dollar strengthens against the Japanese yen, moving from 100 yen per dollar to 120 yen per dollar. How does this affect a Japanese company that exports electronics to the United States?
Their products become cheaper for American buyers leading to more sales to Americans
True or false: People willingly make trades because they believe they will be worse off for it.
False, trades happen because both parties believe they have something to gain
The *current* name of the free trade agreement between the US, Mexico, and Canada which makes a framework for how the US, Canada, and Mexico will freely trade with each other. Bonus 200 points if you can give me the old trade agreement name too.
USMCA (current agreement)
NAFTA (old agreement)
A way that governments try to protect infant (new) industries is by establishing (blank) to encourage people within the country to buy from the new industry at not from foreign companies
Tariffs
What is one of the two reasons unemployment rate is considered an imperfect indicator? I only need one for the game but you'll need to know both for the test
It doesn't take into account discouraged workers who stopped looking for a job and it doesn't take into account the underemployed (it also doesn't take those under 16 into account)
Virginia farmers can produce 1,000 bushels of wheat or 500 bushels of corn on the same land. A Maryland farmer can produce 800 bushels of wheat or 600 bushels of corn on equivalent land. If both farmers specialize according to comparative advantage, what should happen?
The Virginia farmer should produce wheat and the Maryland farmer should produce corn
If I'm importing more goods than I'm exporting, am I operating at a trade surplus or trade deficit?
Trade deficit
This trade union (it also doubles as a political union) made of European countries removed tariffs and quotas on trade with its member nations so it's members can more easily and freely trade. They also created their own currency for its members to use.
European Union (EU)
Embargo
A country has 200 million people over age 16. Of these, 150 million are working and 10 million are actively seeking work. What is the unemployment rate?
6.25% (10 million who are seeking work divided by 160 million)
If I'm going on vacation to France, and the dollar continues to weaken to the Euro (France's currency), what should I expect regarding costs of hotel rooms, meals, etc.?
Cost of meals, hotels, etc. will be more expensive for me
Is a trade deficit necessarily a bad thing?
The (Blank) is the international trade organization that seeks to resolve international trade disputes. Kind of like an economic focused UN
WTO (World Trade Organization)
Setting a limit on the number of goods that can be imported is called making a (blank)
Quota
Saudi Arabia focusing on oil production and not farming is an example of (blank)-ization.
Specialization
As of Tuesday, Nov 3 1 US Dollar is of equal value to 0.89 Euros. Does this mean the dollar is stronger or weaker than the Euro?
Weaker
The US used to be produce lots of manufactured goods. Which factor best explains why the US lost comparative advantage in these products?
Other countries can make the same products for a lower opportunity cost
Surprise Silly Time: Who is the greatest 36 year old basketball player in the NBA who Mr. Lee HAS never said anything bad about especially after he was traded to the Boston Celtics?
Paul George
One more surprise silly time: Which NFL team is the best team with a 2-5 record?
New Orleans Saints