economics 901-975 Flashcards
what is the velocity of money
price level
what does p stand for in the equation of exchange
political stability is lacking, and risk is high
why is it sometimes difficult to attract foreign investment to less developed countries
there might be a different work ethic, or a different belief in the role of the free market, or in the right of women to work, or even in the idea of punctuality
what sorts of social values might be different in a less developed country than in the united states
education
states general spend the most money on
developing countries have much higher birth rates
how do birth rates compare in developed versus developing countries
raised
specialization oand trade have (raised/allowed) standards of living in the world
higher, lower
less developed countries generally have (higher/lower) birth rates and (higher/lower) literacy rates than developing and developed countries
public good
tax revenues are usually intended to provide what type of good
public goods
what type of goods must be provided by government if they are to exist at an adequate level
bhutan, afghanistan, rwanda, el salvador, bangladesh, nigeria
what are some examples of less developed countries
risk their resources or manage their private properrty in a productive and or responsible way
what do incentives cause people to do
developing
classify the development status of a country with a per capita gdp of $7500
a country with a per capita gdp of over $10,000
what constitutes a developed country
a country with a per capita gdp of under $3000
what is a less developed country
developing
classify the development of a country with a per capita gdp of $3001
bhutan
which country has officially began measuring “gross national happiness”
developing
a natino with a per capita gdp of $7000 would be classified as having a (developed/developing/ less-developed) economy
15
Investment represents about _% of GDP in the United States.
$31,437
How much was the U.S> per capita GPD in 1998
frictional
Randy decides to leave his job in New York and travel to Morocco, then back to California , where he is looking for a new job. What kind of unemployment data?
every ccillian age 16 or older who has a job or is seeking one. Millitary personal and convicts do not count.
Defines the labor force
The percentage of the iliasm population in the labor force out of everyone who could be in the labor force.
What is the Labor Force Participation Rate?
the Bureau of Labor Statistics
What government agency keeps track of unemployment data?
cyclical unemployment
The EMployment Act of 1946 most targeted what kind of unemployment.
2000
When did the Employment act of 1946 expire?
75%
About what percentage of workers earning the federal; minimum wage are 20 years or older?
twice as likely
How many times more likely is someone who has not gone to college to earn the minimum wage than someone who has graduated form college?
teh Bureau of Labor Statistics
What government agency measures the Consumer PiceIndex
not necessarily
is a trade deficit always bad
increase
real wages increase/decrease as a result of trade
comparative
a nation benefits by specializing in the goods in which it has a _ advantage
country A will export shirts to country B in exchange for apples
with one hour of labor, country A can produce either one shirt or 4 apples. with the same amount of labor, country B can produce either two shirts or 10 apples. if the two countries trade with each other which will export shirts
an absolute advantage
a nation that is more productive than another nation in a certain good has an absolute advantage/ a comparative advantage in that good
not necessarily. country a has an absolute advantage in this good, but country B may have the comparative advantage
country A can produce a good at a lower cost than country B. should country A export this good it country B
credit
if an item provides us with more foreign currency, it counts as a credit/debit in our balance of international payments
balance
the relationship between the value of a nations exports and the value of it imports is called the trade_
exporter
the U.S. is the largest _ of corn in the world
debit
in a balance of international payments, imports are listed as _ items
the price of a nations currency expressed in terms of the value of another
exchange rate
the ability of one country to produce a good at lower opportunity cost with a greater efficiency relative to other goods than another country
comparative advantage
a good or service produced domestically and sold to consumers in another country
export
more
if the american dollar appreciates versus the japanese yen, it will be worth_ compared to the yen
the ability of one country to produce a good more efficiently at a lower cost than another country
absolute advantage
yes
if country A is less efficient than country B in the production of all goods, is it possible for country A to benefit by trading with country B
TRUE
true or false the wto has en enforcement system
over 140
the wto has about how many members
opposed
the united auto nation union opposed or supported the creation nafta
brazil argentina and paraguay and uruguay are full members. Chile and Bolvia are associates
which countryies beling to mercosur
Romania and Bulgaria
Which two countries will join the EU in 2007?
France, Germany, Belgium, Italy, Sweden, Denmark, Austria, United Kingdom, Ireland, Luxembourg, the Netherlands, Spain, Portugal, Greece, Finland
Name the original 15 countries in the EU
a loss of American jobs to less expensive mexican ones
The major fear felt by opponents of NAFTA was that it eould result in
reducing
The goals of GATT included (increasing or reducing) tarrifs
tarrifs
One goal of NAFTA was to eliminate all _____ among the US, Canada, and MExico over a period of ten to fifteen years
the EU
What is the current name of the organization formerly known as European Community?
Washington D.C.
Where is the World Bank headwuartered?
sanctions
Many nations imposed trade ________ on South Africa when it was under apartheid system
The Uruguay round
What round of GATT talks were completed in 1993?
Paul Wolfowitz
Who is the current president of the World Bank (in 2005)?
Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithiuana, Malta, Poland, Slovakia, Slovenia
What ten european nations joined the EU in 2004?
the dispute settlement body
which part of the world trade organization settled trade disputes
the EU
what is the main european trade association
work toward the formation of the WTO
what was the most signifacnt achievement to emerge from the urugay round
dumping
what is the term for when pnce ocuntry exports a large number of goods to another country at prices much lower than domestic prices
mercosur
this is a south american free trade associaiton
steel
the united states was forced by the WTO to remove tariffs on what calss of goods
a grop of countries that agreed to have free trade
what is a free trade assocation
The IMF
if the contry is suffering a currency crisis to which organiation would they turn to for help
us, mexico, canada
what countireds belong to NAFTA
they feared that union workers would lose their jobs to mexico
why did the united autoworkers union oppose the creation of nafta
hurt
trade sancitons are intended to (help or hurt) the ecnomies of the nations in which they are opposed
the careageana agreement of 1969
which agreement began the development of the andean
the federal trade commission
What federal agency was created to prohibit “unfair methods of competition”
debit
if an item causes us to use up our stock of foreign currency, it counts as a (credit/debt) in our balance of international payments
1914
when was the federal trade commission established
credit
