1 - Relatively high real interest rates in the United States tend to ?
1 - Relatively high real interest rates in the United States tend to ?
increase the foreign demand for dollars causing the dollar to appreciate
2 - If a Big Mac hamburger sells for the same dollar value in New York as in London then ?
2 - If a Big Mac hamburger sells for the same dollar value in New York as in London then ?
purchasing power parity holds
3 - The relationship between the exchange rate and the prices of tradable goods is known as the ?
3 - The relationship between the exchange rate and the prices of tradable goods is known as the ?
purchasing power parity theory
4 - If the income elasticity of demand for a good is negative it must be ?
4 - If the income elasticity of demand for a good is negative it must be ?
an inferior good
5 - If there is excess capacity in a production facility it is likely that the firm's supply curve is ?
5 - If there is excess capacity in a production facility it is likely that the firm's supply curve is ?
price elastic
6 - Technological improvements in agriculture that shift the supply of agricultural commodities to the right tend to ?
6 - Technological improvements in agriculture that shift the supply of agricultural commodities to the right tend to ?
reduce total revenue to farmers as a whole because the demand for food is inelastic
7 - A decrease in supply (shift to the left) will increase total revenue in that market if ?
7 - A decrease in supply (shift to the left) will increase total revenue in that market if ?
demand is price inelastic
8 - If a supply curve for a good is price elastic then ?
8 - If a supply curve for a good is price elastic then ?
the quantity supplied is sensitive to changes in the price of that good
9 - The demand for which of the following is likely to be the most price inelastic ?
9 - The demand for which of the following is likely to be the most price inelastic ?
transportation
10 - in general a flatter demand curve is more likely to be ?
10 - in general a flatter demand curve is more likely to be ?
price inelastic
11 - The price elasticity of demand is defined as ?
11 - The price elasticity of demand is defined as ?
the percentage change in the quantity demanded of a good divided by the percentage change in the price of that good
12 - If consumers think that there are very few substitutes for a good, then ?
12 - If consumers think that there are very few substitutes for a good, then ?
demand would tend to be price inelastic
13 - If demand is linear (a straight line) then price elasticity of demand is ?
13 - If demand is linear (a straight line) then price elasticity of demand is ?
elastic in the upper portion and inelastic in the lower portion
14 - Suppose that at a price of Rs 30 per month there are 30000 subscribers to cable television in small Town. If small Town Cablevision raise its price to Rs 40 per month the number of subscribers will fall to 20000 At which of the following price does small
14 - Suppose that at a price of Rs 30 per month there are 30000 subscribers to cable television in small Town. If small Town Cablevision raise its price to Rs 40 per month the number of subscribers will fall to 20000 At which of the following price does small
Rs 30 per month
15 - Suppose that at a price of Rs 30 per month there are 30000 subscribers to cable television in small Town. If small Town Cablevision raises its price Rs40 per month the number of subscribers will fall to 20000 Using the midpoint method for calculating the
15 - Suppose that at a price of Rs 30 per month there are 30000 subscribers to cable television in small Town. If small Town Cablevision raises its price Rs40 per month the number of subscribers will fall to 20000 Using the midpoint method for calculating the
1.4
16 - If supply is price inelastic the value of the price elasticity of supply must be ?
16 - If supply is price inelastic the value of the price elasticity of supply must be ?
less than 1
17 - If consumers always spend 15 percent of their income on food. then the income elasticity of demand for food is ?
17 - If consumers always spend 15 percent of their income on food. then the income elasticity of demand for food is ?
1
18 - If an increase in the price of a good has no impact on the total revenue in that market demand must be ?
18 - If an increase in the price of a good has no impact on the total revenue in that market demand must be ?
unit price elastic
19 - If a fisher must sell all of his daily catch before it spoils for whatever price he is offered once the fish are caught the fisherman's price elasticity of supply for fresh fish is ?
19 - If a fisher must sell all of his daily catch before it spoils for whatever price he is offered once the fish are caught the fisherman's price elasticity of supply for fresh fish is ?
zero
20 - If the cross-price elasticity between two goods is negative the two goods are likely to be ?
20 - If the cross-price elasticity between two goods is negative the two goods are likely to be ?
complements
21 - Which of the following would cause a demand curve for a good to be price inelastic ?
21 - Which of the following would cause a demand curve for a good to be price inelastic ?
The good is a necessity
22 - in general a flatter demand curve is more likely to be ?
22 - in general a flatter demand curve is more likely to be ?
price elastic
23 - If a small percentage increase in the price of a good greatly reduces the quantity demanded for that good, the demand for that good is ?
23 - If a small percentage increase in the price of a good greatly reduces the quantity demanded for that good, the demand for that good is ?
price elastic
24 - The theory of the second best suggests that in the absence of perfect competition a privatized industry should charge a price of ?
24 - The theory of the second best suggests that in the absence of perfect competition a privatized industry should charge a price of ?
P = MC + Z
25 - Antimonopoly legislation is undertaken to ____ competition and market regulation is undertaken to ____ competition ?
25 - Antimonopoly legislation is undertaken to ____ competition and market regulation is undertaken to ____ competition ?
promote; restrict
26 - In the UK, electricity industry parts are a ____ and other parts are ___ ?
26 - In the UK, electricity industry parts are a ____ and other parts are ___ ?
natural monopoly; potentially competitive
27 - Sales staff are keen to sell extended warranties because ?
27 - Sales staff are keen to sell extended warranties because ?
they are paid commission on each extended warranty they sell.
28 - A conglomerate merger is a merger of ?
28 - A conglomerate merger is a merger of ?
firms producing unrelated products.
29 - Antimonopoly laws are based on the proposition that ?
29 - Antimonopoly laws are based on the proposition that ?
competition is the best way to achieve efficiency.
30 - The external benefits of using cars are ____ and the external costs are _____?
30 - The external benefits of using cars are ____ and the external costs are _____?
low; high
31 - Between 1990 and 1999 car ownership per thousand of the population fell in ?
31 - Between 1990 and 1999 car ownership per thousand of the population fell in ?
USA
32 - Economists use the term regulatory capture to mean a situation where the private sector firms being regulated ?
32 - Economists use the term regulatory capture to mean a situation where the private sector firms being regulated ?
Persuade the regulator to operate in the industry's interests
33 - In the country X it is now becoming possible to buy electricity from a gas company and gas from an electricity company. This is called ?
33 - In the country X it is now becoming possible to buy electricity from a gas company and gas from an electricity company. This is called ?
making markets contestable
34 - De-regulation is where the government ?
34 - De-regulation is where the government ?
removes barriers to entry and minimum product quality standards
35 - Privatization is the transfer of ?
35 - Privatization is the transfer of ?
government businesses to the private sector
36 - A firm charging different buyers' different prices for the same product is practicing ?
36 - A firm charging different buyers' different prices for the same product is practicing ?
Price discrimination
37 - A merger in which firms at various stages in a production process combine is a ?
37 - A merger in which firms at various stages in a production process combine is a ?
vertical merger
38 - A merger between a paper producer and a book publisher is an example of?
38 - A merger between a paper producer and a book publisher is an example of?
a vertical merger
39 - A horizontal merger is a merger of?
39 - A horizontal merger is a merger of?
firms producing the same product
40 - Supporters of antimonopoly enforcement argue that the real gain from such enforcement ?
40 - Supporters of antimonopoly enforcement argue that the real gain from such enforcement ?
Is that this policy serves to deter firms from engaging in such practices as collusion, price-fixing and deceptive advertising
41 - Which city has the following transport policy ?
41 - Which city has the following transport policy ?
Singapore
42 - Evidence suggests that the price elasticity of demand for motoring is ?
42 - Evidence suggests that the price elasticity of demand for motoring is ?
Unitarily elastic
43 - Spending on motoring as a % of household expenditure in the UK shows that motoring is ?
43 - Spending on motoring as a % of household expenditure in the UK shows that motoring is ?
a superior good
44 - Real business cycle theories suggest that _____ to correct departures from the desired growth path?
44 - Real business cycle theories suggest that _____ to correct departures from the desired growth path?
There is a role for stabilizing output ever the business cycle
45 - The impossibility of negative gross investment provides a ______ to fluctuation in ______?
45 - The impossibility of negative gross investment provides a ______ to fluctuation in ______?
floor, output
46 - The multiplier accelerator model assumes ____ depends on ______?
46 - The multiplier accelerator model assumes ____ depends on ______?
investment expected future profits
47 - All of the following are parts of the business cycle except ?
47 - All of the following are parts of the business cycle except ?
acceleration
48 - The business cycle describes fluctuations in output around the?
48 - The business cycle describes fluctuations in output around the?
trend path of output
49 - The neoclassical theory of growth identifier the steady state rate of growth as the ____ just sufficient to keep _____ constant while labor grows?
49 - The neoclassical theory of growth identifier the steady state rate of growth as the ____ just sufficient to keep _____ constant while labor grows?
investment capital per person
50 - GDP per head may be an imperfect measure of economic welfare because it excludes ?
50 - GDP per head may be an imperfect measure of economic welfare because it excludes ?
All of the above
51 - Governments can stimulate productivity by ?
51 - Governments can stimulate productivity by ?
encouraging private investment
52 - A combined measure of productivity that takes account of both labor and capital productivity is known as ?
52 - A combined measure of productivity that takes account of both labor and capital productivity is known as ?
total factor productivity
53 - The belief that the rate of growth depends upon technological progress facilitated by institutions incentives and government is known as ________ growth theory?
53 - The belief that the rate of growth depends upon technological progress facilitated by institutions incentives and government is known as ________ growth theory?
endogenous
54 - The growth path resulting from technological progress for a given saving rate is known as the ?
54 - The growth path resulting from technological progress for a given saving rate is known as the ?
Steady state growth path
55 - The long run equilibrium level of national income is the level at which ?
55 - The long run equilibrium level of national income is the level at which ?
All investment is used to maintain the existing capital stock at its current level
56 - The best way to achieve economic growth is to ?
56 - The best way to achieve economic growth is to ?
save more
57 - The idea of convergence of GDP in Europe suggests that ?
57 - The idea of convergence of GDP in Europe suggests that ?
Poorer less developed countries will catch up with richer ones.
58 - Real business cycle theorists argue that _________ can explain short- and long-term fluctuation in output?
58 - Real business cycle theorists argue that _________ can explain short- and long-term fluctuation in output?
intertertemporal decisions of households, firms and government
59 - The business cycle is not transmitted from one country to another through ?
59 - The business cycle is not transmitted from one country to another through ?
the duration of compulsory education
60 - Real business cycles are cycles in ?
60 - Real business cycles are cycles in ?
potential output
61 - Real business cycle theory suggests that ____ not important in explaining short-term fluctuations around actual output ?
61 - Real business cycle theory suggests that ____ not important in explaining short-term fluctuations around actual output ?
aggregate demand is
62 - The theory that explains business cycles by the dynamic interaction of consumption and investment demand is the ?
62 - The theory that explains business cycles by the dynamic interaction of consumption and investment demand is the ?
multiplier accelerator model
63 - The growth rates of economies tend to converge because ________ is easier when capital per worker is low and because of?
63 - The growth rates of economies tend to converge because ________ is easier when capital per worker is low and because of?
capital-deepening, catch-up in technology
64 - Economic growth may depend upon _____ and _____?
64 - Economic growth may depend upon _____ and _____?
Population growth technical progress
65 - In the neoclassical theory of growth a higher saving rate leads to ?
65 - In the neoclassical theory of growth a higher saving rate leads to ?
no change in the growth rate
66 - Potential output can be increased by ____ or by ______?
66 - Potential output can be increased by ____ or by ______?
increasing the use of all inputs, technical advances
67 - Supply side policies are considered effective in ?
67 - Supply side policies are considered effective in ?
encouraging technological progress
68 - Identify below what does NOT affect productivity ?
68 - Identify below what does NOT affect productivity ?
The phase of the lunar cycle
69 - Policies to encourage productivity do not include ?
69 - Policies to encourage productivity do not include ?
building more retail outlets
70 - The percentage of the working age population that is part of the workforce is known as the ?
70 - The percentage of the working age population that is part of the workforce is known as the ?
participation rate
71 - The golden-rule saving rate is the rate of saving that ?
71 - The golden-rule saving rate is the rate of saving that ?
maximizes the level of long-run consumption
72 - Identify below what is NOT considered to be a cause of economic growth ?
72 - Identify below what is NOT considered to be a cause of economic growth ?
An increase in the money supply
73 - Economic growth is important because ?
73 - Economic growth is important because ?
People want higher incomes and more consumer goods.
74 - Suppose that a war is fought will biological weapons. The weapons destroy people but not capital. What is likely to happen to equilibrium wages and rental rates after the war when compared to their values before the war ?
74 - Suppose that a war is fought will biological weapons. The weapons destroy people but not capital. What is likely to happen to equilibrium wages and rental rates after the war when compared to their values before the war ?
Wages rise, and rental rates fall
75 - An increase in the price of automobiles shifts the demand for autoworkers to the ?
75 - An increase in the price of automobiles shifts the demand for autoworkers to the ?
right and increases the wage
76 - A competitive profit-maximizing firm should hire workers up to the point where ?
76 - A competitive profit-maximizing firm should hire workers up to the point where ?
the value of the marginal product of labor equals the wage
77 - An individual firm's demand for a factor of production ?
77 - An individual firm's demand for a factor of production ?
Slopes downward due to the factor's diminishing marginal product
78 - A decrease in the supply of farm tractors will cause all but which of the following ?
78 - A decrease in the supply of farm tractors will cause all but which of the following ?
an increase in the wage of farm workers
79 - What will a decrease in the supply of fishermen do to the market for capital employed in the fishing industry ?
79 - What will a decrease in the supply of fishermen do to the market for capital employed in the fishing industry ?
decreases the value of the marginal product of fishermen, reduces their wage, and increases employment in the fishing industry
80 - For a competitive profit-maximizing firm, the value-of-the-marginal-product curve for capital is the firm's ?
80 - For a competitive profit-maximizing firm, the value-of-the-marginal-product curve for capital is the firm's ?
demand curve for capital
81 - If a factor exhibits diminishing marginal product, hiring additional units of the factor will ?
81 - If a factor exhibits diminishing marginal product, hiring additional units of the factor will ?
generate ever smaller amounts of output
82 - When capital is owned by the firm as opposed to being directly owned by household capital income may take any of the following forms except ?
82 - When capital is owned by the firm as opposed to being directly owned by household capital income may take any of the following forms except ?
increases in stocks of goods
83 - Which of the following is not true with regard to workers who have a high value of marginal product? These workers ?
83 - Which of the following is not true with regard to workers who have a high value of marginal product? These workers ?
usually have little capital with which to work
84 - An increase in the demand for a firm's output ?
84 - An increase in the demand for a firm's output ?
increases the prosperity of both the firm and the factors hired by the firm.
85 - If both input and output markets are competitive and firms are profit maximizing, then in equilibrium each factor of production earns ?
85 - If both input and output markets are competitive and firms are profit maximizing, then in equilibrium each factor of production earns ?
the value of its marginal product
86 - An increase in the demand for apples will cause all but which of the following ?
86 - An increase in the demand for apples will cause all but which of the following ?
a decrease in the number of apple pickers employed
87 - A decrease in the demand or fish ?
87 - A decrease in the demand or fish ?
decrease the value of the marginal product of fishermen, reduces their wage, and increases employment in the fishing industry
88 - The value of the marginal product of labor is ?
88 - The value of the marginal product of labor is ?
the price of the output times the marginal product of labor
89 - The most important factors of production are ?
89 - The most important factors of production are ?
labor, land, and capital
90 - According to the model of aggregate supply and aggregate demand in the long run an increase in the money supply should cause ?
90 - According to the model of aggregate supply and aggregate demand in the long run an increase in the money supply should cause ?
prices to rise and output to remain unchanged
91 - Refers to Exhibit 4. Suppose the economy is operating in a recession such as point B in Exhibit 4. If policy makers wished to move output to its long run natural rate they should attempt to ?
91 - Refers to Exhibit 4. Suppose the economy is operating in a recession such as point B in Exhibit 4. If policy makers wished to move output to its long run natural rate they should attempt to ?
shift aggregate demand to the right
92 - Stagflation occurs when the economy experiences ?
92 - Stagflation occurs when the economy experiences ?
rising prices and falling output
93 - Suppose the economy is initially is long run equilibrium Then suppose there is a drought that destroys much of the wheat crop According to the model of aggregate demand and aggregate supply, what happens of prices and output in the short run ?
93 - Suppose the economy is initially is long run equilibrium Then suppose there is a drought that destroys much of the wheat crop According to the model of aggregate demand and aggregate supply, what happens of prices and output in the short run ?
Price rise; output falls
94 - Suppose the economy is initially in long-run equilibrium Then suppose there is an increase in military spending due to rising international tensions According to the model of aggregate demand and aggregate supply what happens to prices and output in the s
94 - Suppose the economy is initially in long-run equilibrium Then suppose there is an increase in military spending due to rising international tensions According to the model of aggregate demand and aggregate supply what happens to prices and output in the s
Price rise; output rise
95 - Suppose the price level falls but because of fixed nominal wage contracts the real wage rises and firms cut back on production This is a demonstration of the ?
95 - Suppose the price level falls but because of fixed nominal wage contracts the real wage rises and firms cut back on production This is a demonstration of the ?
sticky-wage theory of the short-run aggregate supply curve
96 - According to the wealth effect aggregate demand slopes downward (negatively) because ?
96 - According to the wealth effect aggregate demand slopes downward (negatively) because ?
lower prices increase the value of money holding and consumers spending increase
97 - Which of the following is not a reason why the aggregate demand curve slopes downward ?
97 - Which of the following is not a reason why the aggregate demand curve slopes downward ?
The classical dichotomy/monetary neutrality effect
98 - According to the interest rate effect aggregate demand slopes downward (negatively) because ?
98 - According to the interest rate effect aggregate demand slopes downward (negatively) because ?
lower prices reduce money holdings increase lending interest rates fall, and investment spending increase
99 - Policy makers are said to "accommodate" an adverse supply shock if they ?
99 - Policy makers are said to "accommodate" an adverse supply shock if they ?
respond to the adverse supply shock by increasing aggregate demand, which further raises prices
100 - Refers to Exhibit 4. Suppose the economy is operating in a recession such as point B in Exhibit 4. If policy makers allow the economy to adjust to the long run natural rate on its own, ?
100 - Refers to Exhibit 4. Suppose the economy is operating in a recession such as point B in Exhibit 4. If policy makers allow the economy to adjust to the long run natural rate on its own, ?
People will reduce their price expectations and the short run aggregate supply will shift right
101 - Which of the following events shifts the short run aggregate supply curve to the right ?
101 - Which of the following events shifts the short run aggregate supply curve to the right ?
a drop-in oil prices
102 - Suppose the economy is initially in long run equilibrium Then suppose there is a drought that destroys much of the wheat crop if policymakers allow the economy to adjust to long-run equilibrium on its own, according to the model to aggregate demand and ag
102 - Suppose the economy is initially in long run equilibrium Then suppose there is a drought that destroys much of the wheat crop if policymakers allow the economy to adjust to long-run equilibrium on its own, according to the model to aggregate demand and ag
Output and the price level are unchanged from their initial values
103 - Suppose the economy is initially in long-run equilibrium Then suppose there is an increase in military spending due to rising international tensions According to the model of aggregate demand and aggregate supply what happens to prices and output in the l
103 - Suppose the economy is initially in long-run equilibrium Then suppose there is an increase in military spending due to rising international tensions According to the model of aggregate demand and aggregate supply what happens to prices and output in the l
Prices rise; output is unchanged from its initial value
104 - Suppose the price level falls but suppliers only notice that the price of their particular product has fallen Thinking there has been a fall in the relative price of their product they cut back on production, This is a demonstration of the ?
104 - Suppose the price level falls but suppliers only notice that the price of their particular product has fallen Thinking there has been a fall in the relative price of their product they cut back on production, This is a demonstration of the ?
misperceptions theory of the short run aggregate supply curve
105 - The natural rate of output is the amount of real GDP produced ?
105 - The natural rate of output is the amount of real GDP produced ?
When the economy is at the natural rate of unemployment
106 - Which of the following statements is true regarding the long-run aggregate supply curve? The long-run aggregate supply cruve ?
106 - Which of the following statements is true regarding the long-run aggregate supply curve? The long-run aggregate supply cruve ?
Is vertical because an equal change in all prices and wages leaves output unaffected
107 - In the model of aggregate demand and aggregate supply, the initial impact of an increase in consumer optimism is to ?
107 - In the model of aggregate demand and aggregate supply, the initial impact of an increase in consumer optimism is to ?
shift the aggregate demand curve to the right
108 - Which of the following would not cause a shift in the long-run aggregate supply curve ?
108 - Which of the following would not cause a shift in the long-run aggregate supply curve ?
An increase in price expectations
109 - Which of the following statements about economic fluctuations is true ?
109 - Which of the following statements about economic fluctuations is true ?
A variety of spending income, and output measures can be used to measure economic fluctuation because most macroeconomic quantitties tend to fluctuate together
110 - If people have rational expectations a monetary policy contraction that is announced and is credible could ?
110 - If people have rational expectations a monetary policy contraction that is announced and is credible could ?
reduce inflation with little or no increase in unemployment
111 - Refer to Exhibit 6. Suppose the economy is Operating in long-run equilibrium at point E. An unexpected monetary contraction will move the economy in the direction of point ?
111 - Refer to Exhibit 6. Suppose the economy is Operating in long-run equilibrium at point E. An unexpected monetary contraction will move the economy in the direction of point ?
F
112 - Refer to Exhibit 6.Suppose the economy is in long-run equilibrium at point E. A sudden increase in government spending should move the economy in the direction of point ?
112 - Refer to Exhibit 6.Suppose the economy is in long-run equilibrium at point E. A sudden increase in government spending should move the economy in the direction of point ?
d
113 - Refer to Exhibit 6.If People in the economy expect inflation to be 3 percent and inflation is 3 percent the economy is operating at point ?
113 - Refer to Exhibit 6.If People in the economy expect inflation to be 3 percent and inflation is 3 percent the economy is operating at point ?
H
114 - A decrease the Price of foreign oil ?
114 - A decrease the Price of foreign oil ?
Shifts the short run Phillips curve downward and makes the unemployment inflation trade off more favorable
115 - Which of the following would shift the long-run Phillips curve to the right ?
115 - Which of the following would shift the long-run Phillips curve to the right ?
An increase in the minimum wage
116 - According to the Phillips curve, in the short run, if policy makers choose an expansionary policy to lower the rate of unemployment ?
116 - According to the Phillips curve, in the short run, if policy makers choose an expansionary policy to lower the rate of unemployment ?
The economy will experience an increase in inflation
117 - Along a short-run Phillips curve, ?
117 - Along a short-run Phillips curve, ?
a higher rate of inflation is associated with a lower unemployment rate
118 - The original Phillips curve illustrates ?
118 - The original Phillips curve illustrates ?
the trade-off between inflation and unemployment
119 - If a country's policy makers were to continuously use expansionary monetary policy in an attempt to hold unemployment below the natural rate the long-run result would be ?
119 - If a country's policy makers were to continuously use expansionary monetary policy in an attempt to hold unemployment below the natural rate the long-run result would be ?
an increase in the rate of inflation
120 - If the sacrifice ratio is five, a reduction in inflation from 7 percent to 3 percent would require ?
120 - If the sacrifice ratio is five, a reduction in inflation from 7 percent to 3 percent would require ?
a reduction in output of 20 percent
121 - Refer to Exhibit 6. Suppose the economy is operating at point (D) As people revise their price expectations ?
121 - Refer to Exhibit 6. Suppose the economy is operating at point (D) As people revise their price expectations ?
The long-run Phillips curve will shift to the left
122 - Refer to Exhibit 6. Suppose the economy is Operating in long-run equilibrium at point E. In the long run a monetary contraction will move the economy in the direction of point ?
122 - Refer to Exhibit 6. Suppose the economy is Operating in long-run equilibrium at point E. In the long run a monetary contraction will move the economy in the direction of point ?
H
123 - Refer to Exhibit 6.If People in the economy expect inflation to be 6 percent but inflation turn out to be 3 percent the economy is operating at point ?
123 - Refer to Exhibit 6.If People in the economy expect inflation to be 6 percent but inflation turn out to be 3 percent the economy is operating at point ?
F
124 - The natural rate hypothesis argues that ?
124 - The natural rate hypothesis argues that ?
in the long run the unemployment rate returns to the natural rate, regardless of inflation
125 - When actual inflation exceeds expected inflation ?
125 - When actual inflation exceeds expected inflation ?
Unemployment is less than the natural rate of unemployment
126 - An increase in expected inflation ?
126 - An increase in expected inflation ?
Shifts the Short run Phillips curve upward and the unemployment inflation trade-off is less favorable
127 - If, in the long run, people adjust their price expectations so that all prices and incomes move proportionately to an increase in the price level then the long-run Phillips curve ?
127 - If, in the long run, people adjust their price expectations so that all prices and incomes move proportionately to an increase in the price level then the long-run Phillips curve ?
is vertical
128 - The Phillips curve is an extension of the model of aggregate supply and aggregate demand because, in the short run, an increase in aggregate demand increase price and ?
128 - The Phillips curve is an extension of the model of aggregate supply and aggregate demand because, in the short run, an increase in aggregate demand increase price and ?
decreases unemployment
129 - The misery index Which some commentators suggest measures the health of the economy, is ?
129 - The misery index Which some commentators suggest measures the health of the economy, is ?
The sum of the unemployment rate and the inflation rate
130 - LDCs often have a comparative advantage in the production of ?
130 - LDCs often have a comparative advantage in the production of ?
primary products
131 - Output fell sharply in the transition economies because ?
131 - Output fell sharply in the transition economies because ?
All of the above
132 - If goods are exported for less than society's marginal production cost and the marginal benefit to domestic consumers, it is likely that they benefit from?
132 - If goods are exported for less than society's marginal production cost and the marginal benefit to domestic consumers, it is likely that they benefit from?
an export subsidy
133 - A tariff causes domestic firms to ________ and consumers to?
133 - A tariff causes domestic firms to ________ and consumers to?
overproduce, under consume
134 - The level of the equilibrium exchange rate offsets international differences in ?
134 - The level of the equilibrium exchange rate offsets international differences in ?
absolute advantage
135 - International difference is opportunity costs lead to countries acquiring ?
135 - International difference is opportunity costs lead to countries acquiring ?
Comparative advantage
136 - To prevent the external value of the currency from falling the government might ?
136 - To prevent the external value of the currency from falling the government might ?
Buy its own currency with foreign reserves
137 - The marginal propensity of consume is equal to ?
137 - The marginal propensity of consume is equal to ?
Change in consumption / change in income
138 - The terms of trade measure ?
138 - The terms of trade measure ?
Export prices compared to import prices
139 - If a country can produce 10 of product A or 4 of product B the opportunity cost of 1B is ?
139 - If a country can produce 10 of product A or 4 of product B the opportunity cost of 1B is ?
2.5A
140 - A demand switching policy could be ?
140 - A demand switching policy could be ?
Tariffs
141 - What is not a feature of the EU as a single market ?
141 - What is not a feature of the EU as a single market ?
Each country can retain its own technical standards
142 - When free trade areas are set up the member countries trade with each other grows faster than their trade with other countries This is due to what economist call ?
142 - When free trade areas are set up the member countries trade with each other grows faster than their trade with other countries This is due to what economist call ?
trade creation and trade diversion
143 - Economic integration ?
143 - Economic integration ?
occurs when two or more nations join to form a free-trade zone
144 - Tariffs are used to protect infant industries these industries are those which ?
144 - Tariffs are used to protect infant industries these industries are those which ?
are not yet large enough to achieve economies of scale
145 - If the Uk placed a limit on the amount of steel that could be imported into the UK in a particular period this would be an example of ?
145 - If the Uk placed a limit on the amount of steel that could be imported into the UK in a particular period this would be an example of ?
a quota
146 - One of the main advantages of trade economists suggest is ?
146 - One of the main advantages of trade economists suggest is ?
competitions with foreign suppliers
147 - A country has a comparative advantage in the production of a product if the good's _____ cost in different from the good's _____ cost in another country ?
147 - A country has a comparative advantage in the production of a product if the good's _____ cost in different from the good's _____ cost in another country ?
opportunity; opportunity
148 - A significant portion of actual world trade patterns results from ?
148 - A significant portion of actual world trade patterns results from ?
different factor endowment between countries
149 - The most wave of globalization which began in the 1980s has emphasized the outsourcing of ?
149 - The most wave of globalization which began in the 1980s has emphasized the outsourcing of ?
services and white-collar jobs
150 - A sudden shift from import tariffs to free trade may induce short-term unemployment in ?
150 - A sudden shift from import tariffs to free trade may induce short-term unemployment in ?
Import-competing industries
151 - For the United States, commercial jetliners are ?
151 - For the United States, commercial jetliners are ?
Imported and exported
152 - International trade in goods and services tends to ?
152 - International trade in goods and services tends to ?
Increase the amount of competition facing home manufacturers
153 - A feasible effect of international trade is that a (an) ?
153 - A feasible effect of international trade is that a (an) ?
Monopoly in the home market becomes an oligopoly in the world market
154 - International trade tends to cause welfare losses to at least some groups in a country ?
154 - International trade tends to cause welfare losses to at least some groups in a country ?
The less mobile the country's resources
155 - Free traders maintain that an open economy is advantageous is that it provides all of the following except ?
155 - Free traders maintain that an open economy is advantageous is that it provides all of the following except ?
Relatively high wages levels for all domestic workers
156 - For the United states, exports plus imports are about _____ of its gross national product?
156 - For the United states, exports plus imports are about _____ of its gross national product?
25 percent
157 - The largest amount of trade with the United States in recent years has been conducted by ?
157 - The largest amount of trade with the United States in recent years has been conducted by ?
Canada
158 - Arguments for free trade are sometimes disregarded by politicians because ?
158 - Arguments for free trade are sometimes disregarded by politicians because ?
Maximizing consumer welfare may not be a chief priority
159 - The movement to free international trade is most likely to generate short-term unemployment in which industries ?
159 - The movement to free international trade is most likely to generate short-term unemployment in which industries ?
Imports competing industries
160 - If a nation has an open economy it means that the nation ?
160 - If a nation has an open economy it means that the nation ?
conducts trade with other countries
161 - A main advantage of specialization results from ?
161 - A main advantage of specialization results from ?
Economies of large-scale production
162 - If a country has a burden of debt it cannot sustain it can ?
162 - If a country has a burden of debt it cannot sustain it can ?
any of the above
163 - Import substitution is the replacement of ____ by domestic production _____ protection of ________?
163 - Import substitution is the replacement of ____ by domestic production _____ protection of ________?
imports, high tariffs or import quotas
164 - LDCs are reluctant to pursue development through the export of primary products because of ____ and _____ ?
164 - LDCs are reluctant to pursue development through the export of primary products because of ____ and _____ ?
The downward trend in commodity prices the volatility of primary products real prices
165 - All of the following represent obstacles to LDC development except ?
165 - All of the following represent obstacles to LDC development except ?
low population
166 - Economic transition involves high inflation because _____ and ______?
166 - Economic transition involves high inflation because _____ and ______?
Prices surge from an artificially low level to their equilibrium level the inflation tax is required a source of government revenue
167 - An optimal tariff is one which reduces imports to the level at which ____ equals ____?
167 - An optimal tariff is one which reduces imports to the level at which ____ equals ____?
social marginal cost, social marginal benefit
168 - The imposition of a tariff causes consumption to _____ and imports to _________?
168 - The imposition of a tariff causes consumption to _____ and imports to _________?
fall, fall
169 - The main cause of different relative costs between countries are ?
169 - The main cause of different relative costs between countries are ?
relative factor endowments
170 - International specialization takes place because of______________?
170 - International specialization takes place because of______________?
All of the above
171 - If there is a balance of payments deficit then in a floating exchange rate system ?
171 - If there is a balance of payments deficit then in a floating exchange rate system ?
The external value of the currency would tend to fall
172 - In a floating exchange rate system ?
172 - In a floating exchange rate system ?
The exchange rate should adjust to equate the supply and demand of the currency
173 - Tariffs ?
173 - Tariffs ?
Increase the quantity of imports
174 - Free trade is based on the principle of ?
174 - Free trade is based on the principle of ?
Comparative advantage
175 - Which of the following is not an argument for protectionism ?
175 - Which of the following is not an argument for protectionism ?
To increase the level of imports
176 - When countries from large trading blocs like the EU, the size of the bloc has the effect of improving them ?
176 - When countries from large trading blocs like the EU, the size of the bloc has the effect of improving them ?
terms of trade
177 - If a group of countries abolish trade barriers between them and set same tariffs on goods coming in from other countries they are a ?
177 - If a group of countries abolish trade barriers between them and set same tariffs on goods coming in from other countries they are a ?
customs union
178 - Economists suggest that an optimum tariff would be one which reduce imports to a point where___________?
178 - Economists suggest that an optimum tariff would be one which reduce imports to a point where___________?
marginal social cost equals marginal social benefit
179 - Government payments made to domestic firms in order to encourage exports are called ?
179 - Government payments made to domestic firms in order to encourage exports are called ?
subsidies
180 - The term tariff, as used in international trade refers to ?
180 - The term tariff, as used in international trade refers to ?
a tax on imports
181 - Term of trade for a country are the ratio of _______________ to _____________?
181 - Term of trade for a country are the ratio of _______________ to _____________?
export prices; import prices
182 - David Ricardo's theory in favor of free trade uses the ideal of ?
182 - David Ricardo's theory in favor of free trade uses the ideal of ?
comparative advantage
183 - The theory that states that a country has a comparative advantage in the production of a product if that country is relatively well endowed with inputs used intensively in the production of that product is the?
183 - The theory that states that a country has a comparative advantage in the production of a product if that country is relatively well endowed with inputs used intensively in the production of that product is the?
Heckscher Ohlin theorem
184 - A reduced share of the world export market for the United States would be attributed to?
184 - A reduced share of the world export market for the United States would be attributed to?
Decreased productivity in U.S manufacturing
185 - Technological improvements are similar to international trade since they both ?
185 - Technological improvements are similar to international trade since they both ?
Increase the nation's aggregate income
186 - The real income of domestic producers and consumers can be increased by ?
186 - The real income of domestic producers and consumers can be increased by ?
Technological Progress and international trade
187 - For the United States automobiles are ?
187 - For the United States automobiles are ?
Exported and imported
188 - Recent pressures for protectionism in the United States have been motivated by all of the following except ?
188 - Recent pressures for protectionism in the United States have been motivated by all of the following except ?
High profit levels for American corporations
189 - Major trading partners of the United States including all of the following countries except ?
189 - Major trading partners of the United States including all of the following countries except ?
North Korea
190 - Increased foreign competition tend to ?
190 - Increased foreign competition tend to ?
Place constraints on the wages of domestic workers
191 - Which American industry has least been affected by import competition in recent years ?
191 - Which American industry has least been affected by import competition in recent years ?
Computer software
192 - International trade is based on the idea that ?
192 - International trade is based on the idea that ?
Resources are less mobile internationally than are goods
193 - International trade forces domestic firms to become more competitive in terms of ?
193 - International trade forces domestic firms to become more competitive in terms of ?
All of the above
194 - International trade in goods and services is sometimes used as a substitute for all of the following except ?
194 - International trade in goods and services is sometimes used as a substitute for all of the following except ?
Domestic production of different goods and services
195 - A primary reason why nations conduct international trade is because ?
195 - A primary reason why nations conduct international trade is because ?
Resources are not equally distributed to all trading nations
196 - The theory of suggests that government can assist domestic companies in capturing economic profits from foreign competitors ?
196 - The theory of suggests that government can assist domestic companies in capturing economic profits from foreign competitors ?
Strategic trade policy
197 - The effect of the most favored nation (normal trade relations) clause is to ?
197 - The effect of the most favored nation (normal trade relations) clause is to ?
maintain a nondiscriminatory structure of tariffs
198 - The result of antidumping tariffs is to ?
198 - The result of antidumping tariffs is to ?
impose a price floor on foreign prices in the importing country
199 - Concerning dumping, which of the following is true ?
199 - Concerning dumping, which of the following is true ?
U.S firms can obtain protection from foreign dumping, even though this protection tends to harm overall U.S welfare
200 - ________ protection such as the escape clause, provide temporary protection to domestic industries facing competition from fairly traded foreign goods?
200 - ________ protection such as the escape clause, provide temporary protection to domestic industries facing competition from fairly traded foreign goods?
safeguards
201 - Antidumping duties applied to imported goods ?
201 - Antidumping duties applied to imported goods ?
result in decreases in consumer surplus for domestic households
202 - The World Trade Organization is sometimes criticized for all of the following reasons except?
202 - The World Trade Organization is sometimes criticized for all of the following reasons except?
it has no way to solve trade disputes among member countries
203 - Compared to what occurred under free trade, Mexico's producer surplus ____ and consumer surplus ____ as a result of the subsidy Use the figure that you have plotted to calculate the amounts ?
203 - Compared to what occurred under free trade, Mexico's producer surplus ____ and consumer surplus ____ as a result of the subsidy Use the figure that you have plotted to calculate the amounts ?
decreases, increases
204 - Under free trade suppose that Japan can supply radios t mexico at the price of $45 Therefore, Mexico's imports equal ?
204 - Under free trade suppose that Japan can supply radios t mexico at the price of $45 Therefore, Mexico's imports equal ?
zero radios
205 - Those who argue in favor of import protection generally give the impression that such restricted trade will?
205 - Those who argue in favor of import protection generally give the impression that such restricted trade will?
provide benefits to the entire nation
206 - The institutional framework developed in 1947 to promote trade liberalization is known sa?
206 - The institutional framework developed in 1947 to promote trade liberalization is known sa?
the GATT
207 - During the post-world War II era?
207 - During the post-world War II era?
NTBs have increased and tariffs have decreased in relative importance
208 - Referring to the above, the embargo was mainly resisted by ?
208 - Referring to the above, the embargo was mainly resisted by ?
U.S farmers and grains companies
209 - Economic sanctions?
209 - Economic sanctions?
involve restrictions in imports exports and or financial flows
210 - The U.S has granted China permanent most favored nation treatment (normal trade relations) This means that the tariff schedules which apply to U.S imports from china ?
210 - The U.S has granted China permanent most favored nation treatment (normal trade relations) This means that the tariff schedules which apply to U.S imports from china ?
have tariff rates that are identical to the rates that apply to other countries to which the U.S grants most-favored nation treatment
211 - The organization that currently establishes rules of conduct for firms engaging in international trade is the ?
211 - The organization that currently establishes rules of conduct for firms engaging in international trade is the ?
World Trade Organization
212 - Which round of international trade negotiations resulted in the creation of the World Trade Organization ?
212 - Which round of international trade negotiations resulted in the creation of the World Trade Organization ?
Uruguay Round of 1986-1993
213 - ________ are quotas that result in a total prohibition of trade?
213 - ________ are quotas that result in a total prohibition of trade?
embargoes
214 - Suppose that Russia steel firms engage in dumping in the German market in terms of overall economic welfare, German welfare would _______ as the result of the dumping?
214 - Suppose that Russia steel firms engage in dumping in the German market in terms of overall economic welfare, German welfare would _______ as the result of the dumping?
increase
215 - According to the United States ____ is the number one violator of intellectual property rights
215 - According to the United States ____ is the number one violator of intellectual property rights
China
216 - Following World War II the United States and other countries sought to liberalize trade among each other the first major postwar step toward trade liberalization was the ?
216 - Following World War II the United States and other countries sought to liberalize trade among each other the first major postwar step toward trade liberalization was the ?
General Agreement on Tariffs and Trade
217 - All of the following are fundamental to the World Trade Organization except ?
217 - All of the following are fundamental to the World Trade Organization except ?
bilateral tariff reductions to promote trade liberalization
218 - To help its firms penetrate Mexico's radio market suppose the Japanese government provides them a subsidy of $15 for each radio shipped to Mexico As a result of this trade policy ?
218 - To help its firms penetrate Mexico's radio market suppose the Japanese government provides them a subsidy of $15 for each radio shipped to Mexico As a result of this trade policy ?
The price of radios in Mexico equals $30 and its imports equal 30 radios
219 - Countervailing duties levied by the U.S government are imposed to offset ?
219 - Countervailing duties levied by the U.S government are imposed to offset ?
subsidies granted to foreign firms that export to the U.S
220 - When one country provides most favored nation status (normal trade relations) for another, it agrees to ?
220 - When one country provides most favored nation status (normal trade relations) for another, it agrees to ?
charge that nation's products a tariff rate no higher than that on any other nation
221 - The strongest political pressure for a trade policy that results in higher protectionism comes from?
221 - The strongest political pressure for a trade policy that results in higher protectionism comes from?
domestic consumers lobbying for import restrictions
222 - A progressive tax system is one where ?
222 - A progressive tax system is one where ?
higher income taxpayers pay a greater percentage of their income in taxes than do lower income taxpayers.
223 - The appropriate tax rate to consider judging the vertical equity of a tax system is the ?
223 - The appropriate tax rate to consider judging the vertical equity of a tax system is the ?
average tax rate
224 - An efficient tax ?
224 - An efficient tax ?
does all the things describe in these answers
225 - Sana values a pair of blue jeans at Rs400. If the price is Rs350 Sana buys the jeans and generates consumer surplus of Rs50 Suppose a tax is placed on blue jeans that causes the price of blue jeans to rise to Rs450 Now sana chooses not to buy a pair of?
225 - Sana values a pair of blue jeans at Rs400. If the price is Rs350 Sana buys the jeans and generates consumer surplus of Rs50 Suppose a tax is placed on blue jeans that causes the price of blue jeans to rise to Rs450 Now sana chooses not to buy a pair of?
the deadweight has demonstrated
226 - When a tax distorts incentives to buyers and sellers so that fewer goods are produced and sold than otherwise the tax has ?
226 - When a tax distorts incentives to buyers and sellers so that fewer goods are produced and sold than otherwise the tax has ?
caused a deadweight loss
227 - If a tax on a good is doubled the deadweight loss from the tax ?
227 - If a tax on a good is doubled the deadweight loss from the tax ?
increase by a factor of four.
228 - When a tax on a good start small and is gradually increased tax revenue ?
228 - When a tax on a good start small and is gradually increased tax revenue ?
will first rise and then fall
229 - Since the supply of undeveloped land is relatively inelastic a tax on undeveloped land would generate ?
229 - Since the supply of undeveloped land is relatively inelastic a tax on undeveloped land would generate ?
a small deadweight loss and the burden of the tax would fall on the landlord
230 - A tax on petrol is likely to ?
230 - A tax on petrol is likely to ?
cause a greater deadweight loss in the long run when compared to the short run
231 - Refer to Exhibit 4. Which of the following is true with regard to the burden of the tax in Exhibit 4 ?
231 - Refer to Exhibit 4. Which of the following is true with regard to the burden of the tax in Exhibit 4 ?
The sellers pay a larger portion of the tax because supply is more inelastic than demand
232 - Refer to Exhibit 4. If a tax is placed on the product in this market total surplus is the area ?
232 - Refer to Exhibit 4. If a tax is placed on the product in this market total surplus is the area ?
A + B + C + D
233 - Refer to Exhibit 4. If a tax is placed on the product in this market tax revenue paid by the sellers is the area ?
233 - Refer to Exhibit 4. If a tax is placed on the product in this market tax revenue paid by the sellers is the area ?
C
234 - Refer to Exhibit 4. If a tax is placed on the product in this market, producer surplus is the area?
234 - Refer to Exhibit 4. If a tax is placed on the product in this market, producer surplus is the area?
D
235 - Refer to Exhibit 4. If there is no tax placed on the product in this market, producer surplus is the area ?
235 - Refer to Exhibit 4. If there is no tax placed on the product in this market, producer surplus is the area ?
C + D + F
236 - Which of the following taxes can be supported by the benefits principle of taxation ?
236 - Which of the following taxes can be supported by the benefits principle of taxation ?
All these answers can be supported by the benefits principle of taxation
237 - A tax system is regarded as horizontally equitable if ?
237 - A tax system is regarded as horizontally equitable if ?
taxpayers with similar abilities to pay taxes pay the same amount
238 - The appropriate tax rate to consider gauging how much the tax system distorts incentives and decision making is the ?
238 - The appropriate tax rate to consider gauging how much the tax system distorts incentives and decision making is the ?
marginal tax rate
239 - The ability-to-pay principle of taxation suggests that if a tax system is to be vertically equitable it should be ?
239 - The ability-to-pay principle of taxation suggests that if a tax system is to be vertically equitable it should be ?
progressive
240 - The average tax rate is ?
240 - The average tax rate is ?
total taxes paid divided by total income
241 - The marginal tax rate is ?
241 - The marginal tax rate is ?
the extra taxes paid on an additional unit of income
242 - A tax for which high income taxpayers pay a smaller fraction of their income than do low income taxpayers is known as ?
242 - A tax for which high income taxpayers pay a smaller fraction of their income than do low income taxpayers is known as ?
a regressive tax
243 - If the Pakistani government runs a budget surplus there is ?
243 - If the Pakistani government runs a budget surplus there is ?
an excess of government receipts over government spending.
244 - The reduction of tax ?
244 - The reduction of tax ?
could increase tax revenue if the tax had been extremely high
245 - The graph that shows the relationship between the size of a tax and the tax revenue collected by the government is known as a ?
245 - The graph that shows the relationship between the size of a tax and the tax revenue collected by the government is known as a ?
Laffer curve
246 - Which of the following is true with regard to a tax on labor income? Taxes on labor income tend to encourage ?
246 - Which of the following is true with regard to a tax on labor income? Taxes on labor income tend to encourage ?
all the things described in these answers.
247 - Deadweight loss is greatest when ?
247 - Deadweight loss is greatest when ?
both supply and demand are relatively elastic
248 - Which of the following would likely cause the greatest deadweight loss ?
248 - Which of the following would likely cause the greatest deadweight loss ?
a tax on cruise line tickets
249 - Refer to Exhibit 4. If a tax is placed on the product in this market. deadweight loss is the area ?
249 - Refer to Exhibit 4. If a tax is placed on the product in this market. deadweight loss is the area ?
E + F
250 - Refer to Exhibit 4. If there is no tax placed on the product in this market total surplus is the area ?
250 - Refer to Exhibit 4. If there is no tax placed on the product in this market total surplus is the area ?
A + B + C + D + E + F
251 - Refer to Exhibit 4. If a tax is placed on the product in this market tax revenue paid by the buyers is the area ?
251 - Refer to Exhibit 4. If a tax is placed on the product in this market tax revenue paid by the buyers is the area ?
B
252 - Refer to Exhibit 4. If a tax is placed on the product in this market consumer surplus is the area ?
252 - Refer to Exhibit 4. If a tax is placed on the product in this market consumer surplus is the area ?
A
253 - Refer to Exhibit 4. If there is no tax placed on the produced in this market consumer surplus is the area ?
253 - Refer to Exhibit 4. If there is no tax placed on the produced in this market consumer surplus is the area ?
A + B + E
254 - Peer borrowing groups of five or so people with joit liability approve loans to other members as a substitute for the bank's screening process The above statement applies to ?
254 - Peer borrowing groups of five or so people with joit liability approve loans to other members as a substitute for the bank's screening process The above statement applies to ?
the Enterprice credit program in Kolkata
255 - The elasticity of propoor growth is ?
255 - The elasticity of propoor growth is ?
the percentage increase in the consumption growth of the poor divided by percentage increase in the consumption growth of the nonpoor
256 - Income inequalities are often shown on a ?
256 - Income inequalities are often shown on a ?
Lorenz curve
257 - Sen's welfare theory relies on ?
257 - Sen's welfare theory relies on ?
individuals' capabilities
258 - According to Human Development Report 2003, about ________ countries were poorer in 2003 than in 1990?
258 - According to Human Development Report 2003, about ________ countries were poorer in 2003 than in 1990?
50
259 - Sala-i-Martin interpolates income distribution by ?
259 - Sala-i-Martin interpolates income distribution by ?
simulation
260 - The Lorenz curve shows ?
260 - The Lorenz curve shows ?
patterns of poverty between developed and developing countries
Pages
No comments:
Post a Comment
Your Valued Comments Help us to improve our site. Thanks