In 2013, the U.S. federal government spent approximately ___________ trillion.
a. $4.9
b. $7.3
c. $3.7
d. $2.1
Suppose the real exchange rate of 115 Japanese yen to the dollar changes to 105 yen to
the dollar. In this situation, the dollar has __________, making Japanese goods
__________ expensive for Americans.
a. appreciated; less
b. appreciated; more
c. depreciated; less
d. depreciated; more
Suppose that labor is mobile between countries A and B.If the relative demand for
goods rises in country A, then labor can flow from ______________.It may be possible
in this situation for countries A and B to __________________ which would help
to___________________.
a. country A to country B; fix the exchange rate between the two countries (or have a
common currency); eliminate the risks associated with having a flexible exchange rate.
b. country B to country A; impose trade restrictions upon one another; increase
employment in country A
c. country B to country A; fix the exchange rate between the two countries (or have a
common currency); eliminate the risks associated with having a flexible exchange rate
d. country A to country B; adopt flexible exchange rates; reduce the risk of exchange
rate fluctuations
Sales tax is an example of an indirect business tax.
a. True
b. False
Assume the Keynesian transmission mechanism is operational and the economy is
currently operating in the horizontal portion of the AS curve.If the money supply
increases and the demand for money curve is downward sloping and investment is
interest ____________, then Real GDP will ___________________.
a. sensitive; rise
b. insensitive; remain unchanged
c. sensitive; remain unchanged
d. insensitive; rise
e. a and b
If you are buying a bond that is newly issued by the corporation, you are buying it in
the primary market.
a. True
b. False
A change in price will lead to a change in __________ and to a change in __________,
while a change in government subsidies will lead to a change in __________ and a
change in the number of buyers will lead to a change in __________.
a. quantity demanded; quantity supplied; supply; demand
b. demand; quantity supplied; supply; quantity demanded
c. quantity demanded; supply; quantity supplied; demand
d. quantity supplied; quantity demanded; demand; supply
e. quantity demanded; demand; quantity supplied; supply
The price of good X has a pattern such that P = $3 on Monday through Thursday of
every week, andP = $2 on Fridays.If speculators begin participating in the market for
good X, their actions will likely lead to a(n) ______________ in the price of good X on
Monday through Thursday and a(n) _______________ in the price of good X on
Friday.
a. increase; increase
b. increase; decrease
c. decrease; increase
d. decrease; decrease
Which of the following is an illustration of the law of increasing opportunity costs?
a. As more cars are produced, the opportunity cost of each additional car is greater than
for the preceding unit.
b. As more cars are produced, the opportunity cost of each additional car is less than for
the preceding unit.
c. As more cars are produced, the opportunity cost of each additional car is the same as
for the preceding unit.
d. People pay lower prices for cars the higher the costs of producing cars.
Exhibit 38-2
If the closing price of Dasher’s stock on the previous day was $17.50, what value goes
in blank (A)?
a. -0.50
b. +0.50
c. -0.25
d. -0.75
e. There is not enough information given to answer this question.
In order for good X to be a likely candidate for offshoring, it must be produced with
______________ labor intensity and be a relatively ________________ good.
a. low; light
b. low; heavy
c. high; heavy
d. high; light