Trade Agreements — Cumulative exam Answers

50 verified answers6 views
1
Free Preview

An extended recessionary period is indicative of

A
a depression.
B
the start of a recovery.
C
a growing economy.
D
the end of a recession.
2
Free Preview

Which is the best definition of hyperinflation?

A
a gradual decrease in the price of goods and services
B
a gradual increase in the price of goods and services
C
an exponential decrease in the price of goods and services
D
an exponential increase in the price of goods and services
3

Why is the slow growth that can result from a contractionary policy a positive effect?

A
It can increase loan interest rates.
B
It can decrease available credit.
C
It can increase the money supply.
D
It can decrease inflation.
4

What do the indicators used by economists reveal?

A
changes in production and demand
B
changes in employment levels
C
changes in prices
D
changes in the health of an economy
5

Economists use changes in GDP to measure

A
the balance of trade with other countries.
B
any economic growth or shrinkage.
C
the causes of unemployment.
D
the distances between cities.
6

Which are indicators that economists use to measure how an economy grows? Select two options.monitoring election resultsmeasuring how much the economy producesmonitoring the popularity of different music groupsstudying the economy of another countrytracking the unemployment rate

A
monitoring election results
B
measuring how much the economy produces
C
monitoring the popularity of different music groups
D
studying the economy of another country
E
tracking the unemployment rate
8

When it spends money on education, a government is trying to

A
find a way to meet a social need.
B
encourage immediate economic growth.
C
meet a social need and improve the economy.
D
find a way to spend budget surpluses.
9

Demand-pull inflation occurs when

A
the price of goods rises suddenly and extremely fast.
B
consumers begin purchasing more goods.
C
producers need more money to make and distribute goods.
D
the government prints more money and pushes prices up.
10

What is true of the M1 category of money?

A
It is not usually in circulation.
B
It cannot be quickly exchanged.
C
It can be easily liquidated.
D
It is in investment accounts.
11

A certificate of deposit pays a higher interest rate than a savings account because the money is

A
guaranteed by the government.
B
kept by banks for a longer time period.
C
loaned to banks by consumers.
D
immediately available to consumers.
12

Banks that offer low interest rates to people with good credit

A
maximize profits at little risk.
B
sacrifice profits for less risk.
C
maximize profits at great risk.
D
sacrifice profits for more risk.
14

Aggregate supply is best described as the

A
total output of all products and services.
B
point of equilibrium.
C
nation’s real gross national product.
D
excess supply in the market.
15

Which organization created a shared economy?

A
European Union
B
World Trade Organization
C
North American Free Trade Agreements
D
Association of Southeast Asian Nations
17

Why do most nations use fiat money today?

A
Governments are able to exert control over the value of fiat money.
B
Fiat money is stable and will not lose value during economic downturns.
C
Fiat money will maintain its value despite fluctuating exchange rates.
D
Governments know that fiat money derives its value from gold and silver.
18

Corporate taxes are a type of

A
income tax.
B
property tax.
C
sales tax.
D
excise tax.
19

If it becomes less expensive to travel overseas from the United States, American tourists will benefit from the fact that

A
tourist sites are getting crowded and dirty.
B
the US dollar has become stronger.
C
prices of foreign goods are rising.
D
the US dollar has declined in value.
20

Embargoes, quotas, and standards are tools that countries use

A
to reduce exports.
B
to punish other countries.
C
to restrict imports.
D
to raise prices of domestic goods.

Did you find these answers helpful?

Trade Agreements — Cumulative exam Answers —…