economics 901-975

Question 1

what is the velocity of money

Answer 1

price level

Question 2

what does p stand for in the equation of exchange

Answer 2

political stability is lacking, and risk is high

Question 3

why is it sometimes difficult to attract foreign investment to less developed countries

Answer 3

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

Question 4

what sorts of social values might be different in a less developed country than in the united states

Answer 4

education

Question 5

states general spend the most money on

Answer 5

developing countries have much higher birth rates

Question 6

how do birth rates compare in developed versus developing countries

Answer 6

raised

Question 7

specialization oand trade have (raised/allowed) standards of living in the world

Answer 7

higher, lower

Question 8

less developed countries generally have (higher/lower) birth rates and (higher/lower) literacy rates than developing and developed countries

Answer 8

public good

Question 9

tax revenues are usually intended to provide what type of good

Answer 9

public goods

Question 10

what type of goods must be provided by government if they are to exist at an adequate level

Answer 10

bhutan, afghanistan, rwanda, el salvador, bangladesh, nigeria

Question 11

what are some examples of less developed countries

Answer 11

risk their resources or manage their private properrty in a productive and or responsible way

Question 12

what do incentives cause people to do

Answer 12

developing

Question 13

classify the development status of a country with a per capita gdp of $7500

Answer 13

a country with a per capita gdp of over $10,000

Question 14

what constitutes a developed country

Answer 14

a country with a per capita gdp of under $3000

Question 15

what is a less developed country

Answer 15

developing

Question 16

classify the development of a country with a per capita gdp of $3001

Answer 16

bhutan

Question 17

which country has officially began measuring “gross national happiness”

Answer 17

developing

Question 18

a natino with a per capita gdp of $7000 would be classified as having a (developed/developing/ less-developed) economy

Answer 18

15

Question 19

Investment represents about _% of GDP in the United States.

Answer 19

$31,437

Question 20

How much was the U.S> per capita GPD in 1998

Answer 20

frictional

Question 21

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?

Answer 21

every ccillian age 16 or older who has a job or is seeking one. Millitary personal and convicts do not count.

Question 22

Defines the labor force

Answer 22

The percentage of the iliasm population in the labor force out of everyone who could be in the labor force.

Question 23

What is the Labor Force Participation Rate?

Answer 23

the Bureau of Labor Statistics

Question 24

What government agency keeps track of unemployment data?

Answer 24

cyclical unemployment

Question 25

The EMployment Act of 1946 most targeted what kind of unemployment.

Answer 25

2000

Question 26

When did the Employment act of 1946 expire?

Answer 26

75%

Question 27

About what percentage of workers earning the federal; minimum wage are 20 years or older?

Answer 27

twice as likely

Question 28

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?

Answer 28

teh Bureau of Labor Statistics

Question 29

What government agency measures the Consumer PiceIndex

Answer 29

not necessarily

Question 30

is a trade deficit always bad

Answer 30

increase

Question 31

real wages increase/decrease as a result of trade

Answer 31

comparative

Question 32

a nation benefits by specializing in the goods in which it has a _ advantage

Answer 32

country A will export shirts to country B in exchange for apples

Question 33

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

Answer 33

an absolute advantage

Question 34

a nation that is more productive than another nation in a certain good has an absolute advantage/ a comparative advantage in that good

Answer 34

not necessarily. country a has an absolute advantage in this good, but country B may have the comparative advantage

Question 35

country A can produce a good at a lower cost than country B. should country A export this good it country B

Answer 35

credit

Question 36

if an item provides us with more foreign currency, it counts as a credit/debit in our balance of international payments

Answer 36

balance

Question 37

the relationship between the value of a nations exports and the value of it imports is called the trade_

Answer 37

exporter

Question 38

the U.S. is the largest _ of corn in the world

Answer 38

debit

Question 39

in a balance of international payments, imports are listed as _ items

Answer 39

the price of a nations currency expressed in terms of the value of another

Question 40

exchange rate

Answer 40

the ability of one country to produce a good at lower opportunity cost with a greater efficiency relative to other goods than another country

Question 41

comparative advantage

Answer 41

a good or service produced domestically and sold to consumers in another country

Question 42

export

Answer 42

more

Question 43

if the american dollar appreciates versus the japanese yen, it will be worth_ compared to the yen

Answer 43

the ability of one country to produce a good more efficiently at a lower cost than another country

Question 44

absolute advantage

Answer 44

yes

Question 45

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

Answer 45

TRUE

Question 46

true or false the wto has en enforcement system

Answer 46

over 140

Question 47

the wto has about how many members

Answer 47

opposed

Question 48

the united auto nation union opposed or supported the creation nafta

Answer 48

brazil argentina and paraguay and uruguay are full members. Chile and Bolvia are associates

Question 49

which countryies beling to mercosur

Answer 49

Romania and Bulgaria

Question 50

Which two countries will join the EU in 2007?

Answer 50

France, Germany, Belgium, Italy, Sweden, Denmark, Austria, United Kingdom, Ireland, Luxembourg, the Netherlands, Spain, Portugal, Greece, Finland

Question 51

Name the original 15 countries in the EU

Answer 51

a loss of American jobs to less expensive mexican ones

Question 52

The major fear felt by opponents of NAFTA was that it eould result in

Answer 52

reducing

Question 53

The goals of GATT included (increasing or reducing) tarrifs

Answer 53

tarrifs

Question 54

One goal of NAFTA was to eliminate all _____ among the US, Canada, and MExico over a period of ten to fifteen years

Answer 54

the EU

Question 55

What is the current name of the organization formerly known as European Community?

Answer 55

Washington D.C.

Question 56

Where is the World Bank headwuartered?

Answer 56

sanctions

Question 57

Many nations imposed trade ________ on South Africa when it was under apartheid system

Answer 57

The Uruguay round

Question 58

What round of GATT talks were completed in 1993?

Answer 58

Paul Wolfowitz

Question 59

Who is the current president of the World Bank (in 2005)?

Answer 59

Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithiuana, Malta, Poland, Slovakia, Slovenia

Question 60

What ten european nations joined the EU in 2004?

Answer 60

the dispute settlement body

Question 61

which part of the world trade organization settled trade disputes

Answer 61

the EU

Question 62

what is the main european trade association

Answer 62

work toward the formation of the WTO

Question 63

what was the most signifacnt achievement to emerge from the urugay round

Answer 63

dumping

Question 64

what is the term for when pnce ocuntry exports a large number of goods to another country at prices much lower than domestic prices

Answer 64

mercosur

Question 65

this is a south american free trade associaiton

Answer 65

steel

Question 66

the united states was forced by the WTO to remove tariffs on what calss of goods

Answer 66

a grop of countries that agreed to have free trade

Question 67

what is a free trade assocation

Answer 67

The IMF

Question 68

if the contry is suffering a currency crisis to which organiation would they turn to for help

Answer 68

us, mexico, canada

Question 69

what countireds belong to NAFTA

Answer 69

they feared that union workers would lose their jobs to mexico

Question 70

why did the united autoworkers union oppose the creation of nafta

Answer 70

hurt

Question 71

trade sancitons are intended to (help or hurt) the ecnomies of the nations in which they are opposed

Answer 71

the careageana agreement of 1969

Question 72

which agreement began the development of the andean

Answer 72

the federal trade commission

Question 73

What federal agency was created to prohibit "unfair methods of competition"

Answer 73

debit

Question 74

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

Answer 74

1914

Question 75

when was the federal trade commission established

Answer 75

credit