Economics Flashcards
Euroequity is a stock that is:
Traded outside its country of origin.
The Franklin/Templeton mutual funds company recently introduced a new mutual fund that invests in companies in four rapidly developing countries. The fund, called the BRIC fund, refers to which set of countries?
Brazil, Russia, India, China
Assuming that the federal required reserve ratio is 20 percent and the discount rate is 5 percent. If $1000 is deposited into a bank, what will be the total increase to the money supply?
$5000
The government of Country ABC has decided to decrease the money supply after initially achieving equilibrium in the real and financial sector. How will this decision affect the IS-LM model?
The LM curve will shift to the left.
If an official host government visited an American embassy and requested assistance from the U.S in setting up an environmental monitoring and measuring system, the embassy officer would?
Contact the Department of State, the U.S Environmental Protection Agency, the U.S Agency of International Development, and the Trade Development Agency to determine what assistances might be provided.
Which of the fallowing international or regional certification and eco-labeling schemes have the highest participants by environmental nongovernmental organization (NGO’s) in creating and enforcing standards?
Forest Stewardship Council (FSC)
Total tax revenue have historically made up what percent of the U.S. economy?
18 percent
Transferable discharge permits allow polluters to buy and sell the right to pollute. For which type of environmental pollution are these permits most often used?
Air pollution from power generation companies.
Foreign Service Officers gather information and report on anti-dumping cases in support of which U.S. agency that has primary responsibility for the determination is such cases?
The International Trade Commission
An inventory philosophy developed in Japan that employs a trigger that signals when products are needed and should then be ordered is called.
Just in time (JIT)
Which of the fallowing best illustrates the concept of opportunity cost?
A firm chooses to produce plastic tableware instead of plastic storage bins.
What special provisions are contained in all World Trade Organization (WTO) agreements for developing or least-developed member countries?
Provisions requiring all WTO members to safeguard their trade interests.
A host country manufacturer seeks trade preferences status with the U.S.; however, the Foreign Service Officer (FSO) is aware that the country is a known exploiter of child labor. The FSO should explain that pursuant to the Trade and Development Act:
The Generalized System of Preference now links beneficiary countries’ commitment to eliminate the worst forms of child labor to receipt of trade benefits.
The European Union (EU) promotes free trade among its members states. Over the years, EU membership has grown to 25 countries with European countries seeking membership. What would be an appropriate statement for a U.S. official to make at a trade summit organization between the U.S. and the EU in 2006?
“The U.S. and the EU share a longstanding commitment to free and open markets, and the U.S. is looking forward to continuing to work with the EU in further promotion of free trade and economic integration across the Atlantic region”
Which of the fallowing 4 characteristics would LEAST apply to investment recovery inventory?
A. Unpredictable generation
B. Unpredictable demand
C. Unknown condition
D. Simplified pricing
Simplified pricing
When negotiating an inventory resupply arrangement for gasoline, what would typically be addressed last?
Price
What is a reason for holding any inventory is most important?
To deal with uncertainty in supply and demand.
The most commonly included factors used to calculate the cost to carrying inventory is?
Interest rate of money
The Byrd Amendment was found in violation of international trade law by the World Trade Organization (WTO) dispute settlement panel because the amendment provided that:
Dumping duties collected on U.S. imports would be distributed to the injured companies.
What cost is included in the carrying cost of supplies inventory?
Cost of money
A system in which good are replaced as they are used by means of a card (or other signaling device) that travels with the goods and is sent back to the supplier when the goods are consumed as authentic authorization to replace what was used is known as?
Kanban
Which U.S government body is in charge of monetary policy?
Federal Reserve
The Cuban Liberty and Democratic solidarity (Libertad) Act (Helms-Burton) provides for sanctions against foreign companies involved in what sorts of transactions in Cuba?
Investment in nationalized property
The Foreign Corruption Practices Act prohibits corruption payments by
U.S. companies overseas
Trade Promotion Authority granted to the President by Congress gives the executives branch the authority to negotiate:
Trade agreement provided that Congress approves each agreement as a whole
Under the Generalized System of Preferences of the U.S., the U.S. establishes an exception to the Most Favored Nation principle of international trade law by giving special access to the U.S. market to:
Developing countries for certain categories of products
From the point of view of international trade law, the Helms-Burton law for dealing with Cuba is legally questionable because it:
Calls for secondary boycotts
In regard to the Most Favored Nation (MFN) principle that is a key provision of the General Agreement on Tariffs and Trade (GATT) and World Trade Organization (WTO) trade law, what do GATT and the WTO say regarding the North American Free Trade Agreement (NAFTA), a regional trading agreement?
NAFTA is allowed as an exception since it does not raise barriers against non-members.
