Education can contribute to economic growth through:
A) a better integration of technology and workers’ skills.
B) the faster discovery of new technologies.
C) the faster adaptation of existing technologies.
D) all of the above.
Figure 19.3 Refer to Figure 19.3. The market for yen is currently at Point A. An
increase in Japanese interest rates causes the equilibrium to move to point ________
and the U.S. dollar will ________.
A) C; appreciate
B) A; appreciate
C) B; depreciate
D) D; depreciate
The aggregate demand curve:
A) slopes upward.
B) slopes downward.
C) may slope upward or downward.
D) is horizontal.
Figure 4.5 Figure 4.5 illustrates the supply of guitars. An increase in the supply of
guitars is represented by a movement from:
A) point B to point C.
B) point B to point A.
C) S1 to S0.
D) S1 to S2.
Which of the following organizations has over 149 member nations and oversees the
General Agreement on Trade and Tariffs?
A) North American Free Trade Agreement
B) World Trade Organization
C) European Union
D) Asian Pacific Economic Cooperation
Real interest rates are the
A) interest rates quoted in the market minus the inflation rate.
B) interest rates quoted in the market plus the expected inflation rate.
C) interest rates quoted in the market.
D) nominal interest rates plus the inflation rate.
The economy’s ability to coordinate economic activity is hindered by
A) sticky wages causing sticky prices.
B) auction prices.
C) workers whose wages change quickly.
D) all of the above
Net international investment position measures:
A) foreign holdings of domestic assets.
B) the imbalance between the amount of foreign assets sold to domestic residents and
the quantity of foreign goods and services purchased by domestic residents.
C) the imbalance between the amount of domestic assets held by foreigners and the
amount of foreign assets held by domestic residents.
D) the imbalance between the amount of domestic assets held by foreigners and the
quantity of domestic goods and services purchased by foreigners.
Suppose that a firm can invest $100 today in a project and receive $105 a year from
today. There is no inflation, and the annual interest rate in the economy is 6%. The firm
should
A) invest in the project because the opportunity cost is less than the return on the
investment.
B) invest in the project because the opportunity cost is greater than the return on the
investment.
C) invest in the project because the opportunity cost is the same as the return on the
investment.
D) not invest in the project because the opportunity cost is greater than the return on the
investment.
Recall the Application about the decrease in taxes on cigarettes in several
Canadian provinces in 1994 to answer the following question(s). According to this
Application, after the government deceased cigarette taxes in several Canadian
provinces in 1994, the decrease in the price of cigarettes in these provinces
A) more than doubled the smoking rate.
B) created no noticeable change in the smoking rate.
C) increased the smoking rate by roughly 17 percent
D) was accompanied by a slight decrease in the rate of smoking.