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General
Policy 1
Policy 2
International
Left overs
100
It is necessary for government to supply public goods a. The government can best decide... b. Number of people too small for the market c. Only the government is big enought to provide them d. private producers cannot sell them and make a profit
What is d. private producers cannot sell public goods and make a profit.
100
The relationship between taxes and public goods is a. People who pay more tax get more public goods b. Public goods are the main source of tax revenue c. Public goods are funded with taxes d. Those who benefit most pay the highest taxes
What is c. Public goods are funded with taxes
100
The Fed controls the amount of money that banks create through making loans by a. open market operations b. bank closings c. setting the federal funds rate d. setting the reserve requirement
What is d. setting the reserve requirement
100
Comparative advantage results when one nation produces a product at a lower a. marginal benefit b. marginal profit c. opportunity cost d. production cost
What is c. opportunity cost
100
The effect of trade barriers on domestic prices is to a. keep hem stable b. lower them c. prevent inflation d. raise them
What is d. raise them
200
Economic and social mobility are necessary for economic development because they a. encourage free trade b. prevent government corruption c. provide incentive for efficiency and productivity d. provide incentive for privileges to favored businessses
What is c. provide incentive for efficiency and productivity
200
When the Fed buys bonds on the open market a. demand for bonds & interest rates decrease b. demand for bonds & interest rates increase c. demand for bonds decreases & interest rates increase d. demand for bonds increases & interest rates decrease
What is d. demand for bonds increases and interest rates decrease.
200
Monetary policy actions that decrease the money supply: a. buying bonds on the open market b. lowering the discount rate c. lowering the reserve requirement d. selling bonds on the open market
What is d. selling bonds on the open market
200
International trade benefits only nations that a. export more than they import b. import more than they export c. participate in trade associations d. trade according to the law of comparative advantage
What is d. trade according to the law of comparative advantage.
200
All of the following are included in NAFTA except a. environmental and worker protections b. eventual phase out of all trade barriers c. improved intellectual property protection d. unrestricted immigration among member nations
What is d. unrestricted immigration among member nations.
300
In its transition to a market economy, one of Russia's biggest problems has been a. corruption and insider favoritism b. deflation c. the lack of natural resources d. the lack of well-educated citizens
What is a. corruption and insider favoritism
300
This scenario represents fiscal and monetary policy working together, a. The Fed buys bonds & government increases spending b. The Fed buys bonds & government raises taxes c. The Fed sells bonds & government cuts taxes d. The Fed sells bonds & government increases spending
What is a. The Fed buys bonds and the government inreases spending.
300
The Fed changes the federal funds rate by a. buying and selling bonds in the open market b. by changing the amount of reserves banks must hold c. changing the rate banks pay when the borrow d. setting the rate that banks charge when they lend
What is a. buying and selling bonds in the open market
300
If Country A exports some TVs to Country B because country A's market for TVs is well satisfied, then the a. demand for televisions in Country B will decline b. demand for televisions in Country A will declind c. price of televisions in Country A will rise d. price of televisioins in Bountry B will rise
What is c. price of televisions in County A rises
300
The World Trade Organization grew out of the recovery from a. the Great Depression b. the Suez crisis c. World War I d. World War II
What is d. World War II
400
One fundamental of a market economy is a. consumer sovereignty b. high taxes c. government-controlled factories d. national health insurance
What is a. consumer sovereignty
400
The goal of contractionary fiscal policy is to lower a. interest rates b. prices c. taxes d. unemployment
What is b. prices
400
The result of expansionary monetary policy is a. banks lend more money b. business investment declines c. unemployment increases d. prices decrease
What is a. banks lend more money
400
Protective tariffs are one kind of a. embargo b. quota c. trade barrier d. trade war
What is c. trade barrier
400
Developed nations are characterized by market economy, relatively high standard of living, high GDP, and a. unfavorable trade policies b. government corruption c. infrastructure difficulties d. widespread private property
What is d. widespread private property
500
In the circular flow model, money flows a. one wway and business revenue flows another b. one way and products flow another c. the same way as goods and services d. the same way as productive resources
What is b. one way and products flow another
500
When federal revenue exceeds spending the result is a. balanced budget b. budget deficit c. budget surplus d. larger national debt
What is c. budget surplus
500
The short-term effect of contractionary policy is a. consumer spending increases b. interest rates rise c. prices rise d. unemployment falls
What is b. interest rates rise
500
The value of a US dollar today depends on the a. forces of supply and demand b. price of gold c. price of the RenMinBi d. value of th EU dollar
What is a. forces of supply and demand
500
Nations with a high percentage of the population working in agriculture are likely to be a. developed nations b. large energy users c. less developed nations d. transitional economies
What is c. less developed nations