Economics BA(last one)

Question 0

in the United States, which component of GDP is largest?

Answer 0

consumer spending

Question 1

How does an increase in military spending affect the domestic economy as measured by the GDP?

Answer 1

GDP increases

Question 2

what are some examples of regressive taxes?

Answer 2

State sales tax and state property tax

Question 3

what type of tax is the state sale tax?

Answer 3

reggressive

Question 4

what is the main purpose of the Federal Reserve?

Answer 4

to control the money supply

Question 5

how does inflation affect the domestic economy?

Answer 5

it reduces purchasing power

Question 6

what will the Federal Reserve do with interest rates if there is inflation

Answer 6

interest rates will increase

Question 7

watch type of unemployment is represented by a college graduate who does not have a job during the first month after graduating?

Answer 7

frictional unemployment

Question 8

identify then explain why an ATM machine that replaces a bank teller will create a more permanent type of unemployment and maybe more difficult to correct?

Answer 8

structural unemployment

Question 9

explain why the government keeps track of the consumer price index

Answer 9

it measures inflation

Question 10

during the peak of the business cycle, what happens to unemployment?

Answer 10

unemployment is at a low rate

Question 11

using fiscal policy, explain why the government would step in to try to increase government spending

Answer 11

The government may increase government spending to stop a recession

Question 12

why would government spending on medical research result in lower unemployment and more economic growth

Answer 12

Government spending in the sector could lead to an investment in employees

Question 13

using monetary policy, explain how arise in government securities would affect consumer behavior

Answer 13

people will buy more savings bond

Question 14

what could be an unintended consequence of using corn ethanol as a alternate fuel

Answer 14

The price of corn increases

Question 15

how has increased outsourcing affected consumers

Answer 15

prices aren’t as high

Question 16

as the economy globalizes, what happens to quality-control

Answer 16

consumers have less guarantee of quality control

Question 17

what impact has globalizing economy had on auto makers

Answer 17

it has forced the automobile industry and sellers to be more competitive

Question 18

is there more interdependence or less interdependence as a result of globalization

Answer 18

more

Question 19

what impact does globalization have on domestic jobs

Answer 19

one effect of globalization is a shift in the types of domestic jobs available

Question 20

what is a benefit of the US dollar weakening against the euro

Answer 20

The US exports more goods

Question 21

what is comparative advantage of trade

Answer 21

can produce item or efficiently than other country

Question 22

what is absolute advantage of trade

Answer 22

is better at producing everything than another country

Question 23

what is the main advantage of producing according to the concept of comparative advantage

Answer 23

it’s makes the most efficient use of world resources

Question 24

if all other factors stay the same, what happens to GDP when the US consumers buy more foreign cars?

Answer 24

that will reduce the GDP

Question 25

how would outsourcing impact manufacturing jobs in the US

Answer 25

increased outsourcing leads to a decreasing number of manufacturing in the US

Question 26

how might the international monetary fund held a developing country

Answer 26

by providing loans to support their economy

Question 27

what’s international organization would be most concerned with protective tariffs?

Answer 27

World Trade Organization

Question 28

which international organization monitors loans made to countries around the globe

Answer 28

World Bank or monetary fund. They are the same thing.