Trade Agreements — Cumulative exam Answers

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41
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Often duties and taxes are imposed on cars that are imported from other countries. What types of incentives are these duties and taxes?

A
positive incentive and subsidy.
B
negative incentive and subsidy.
C
positive incentive and tariff.
D
negative incentive and tariff.
42
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What are the goals when a government uses expansionary monetary policy? Check all that apply.increasing its money supply to boost the economydecreasing its money supply to slow the economyincreasing its money supply to speed business expansiondecreasing its money supply to curb business expansiondecreasing its interest rates to increase investment spending

A
increasing its money supply to boost the economy
B
decreasing its money supply to slow the economy
C
increasing its money supply to speed business expansion
D
decreasing its money supply to curb business expansion
E
decreasing its interest rates to increase investment spending
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How can a nation benefit from effectively exporting its goods?

A
Its citizens can buy cheaper goods.
B
Its businesses can invest in the future.
C
Its domestic spending increases.
D
Its citizens have more money.
44

A diagram shows that taxes go into the government, which then go into spending.

Question illustration
G
Government Spending
T
The National Economy
T
The Federal Debt
F
Fiscal Policy
45

Bank deposits help the nation’s economy by

p
providing protection for consumers from theft.
g
giving banks the money to loan and invest.
p
providing protection for banks on investments.
g
giving consumers the ability to save money.
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The chart below shows an exchange rate table.

Question illustration
A
US dollar.
B
Swiss franc.
C
Japanese yen.
D
euro.
47

What is one consequence of stagflation?

A
The economy drastically slows down as money loses its buying power.
B
Producers cannot keep up with consumer interest and raise their prices.
C
There are not enough workers to meet the rising level of production.
D
Demand is too high and people spend more money than they should.
48

One primary purpose of the European Union is to

c
create a common market.
e
eliminate borders between countries.
a
allow highly skilled workers to be employed.
l
limit trade among member countries.
49

Revenue and expenditures are sitting on a balance. Expenditures are lower than revenue.

Question illustration
A
a budget surplus
B
a budget deficit
C
a balanced budget
D
a plan to balance the budget
50

importeddomestic

A
imported
B
domestic

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