Navigation » List of Schools » Glendale Community College » Economics » Econ 102 – Principles of Macroeconomics » Winter 2021 » Exam 4
Below are the questions for the exam with the choices of answers:
Question #1
A a tariff reduces tax revenue
B a tariff lowers the world price of a good
C a tariff raises the world price of a good
D a tariff increases the amount of imports
Question #2
A Italy has the comparative advantage in producing cheese
B Italy has the absolute advantage in producing wine
C France has the absolute advantage in producing cheese
D Italy has the comparative advantage in producing wine
Question #3
A rising
B the same
C high
D low
Question #4
A to decrease domestic jobs
B to have a greater variety of goods and service
C to protect domestic jobs
D to pay less for goods and services
Question #5
A wages and prices adjust quickly
B wages and prices are sticky
C people are well off and do not need assistance
D the government can make the economy recover faster
Question #6
A wages cannot adjust when the economy slows
B inflation is too high
C wages and prices are flexible
D the government is slow to detect a recession
Question #7
A 1 box of cheese = 2 bottles of wine
B 1 box of cheese = 4 bottles of wine
C 1 box of cheese = 5 bottles of wine
D 1 box of cheese = 10 bottles of wine
Question #8
A trade creates more jobs
B they want nurture infant industries and protect them from foreign competition
C competition is beneficial
D low income countries have high environmental standards
Question #9
A wages and prices are sticky
B the economy is at full employment
C the economy is past full employment
D wages and prices are flexible
Question #10
A produce a good or service using fewer resources than another country
B produce a good or service using more resources than another country
C produce a good or service at a lower opportunity cost
D produce a good or service at a higher opportunity cost
Question #11
A the economy will adjust on its own
B the government works efficiently
C fiscal policy is effective in fighting recessions
D the government can make the economy recover faster
Question #12
A an initial increase in spending, cycles repeatedly through the economy and has a larger impact than the initial dollar amount spent
B an initial decrease in spending, cycles repeatedly through the economy and has a larger impact than the initial dollar amount spent
C an initial increase in spending, has no impact on the economy
D an initial increase in spending, cycles repeatedly through the economy and has a smaller impact than the initial dollar amount spent
Question #13
A Malaysia has an absolute advantage in producing both fish and copper
B Indonesia has an absolute advantage in producing both fish and copper
C Indonesia has the comparative advantage in producing copper
D Malaysia has the comparative advantage in producing fish
Question #14
A an increase in government spending
B a decrease in taxes
C a decrease in interest rates
D a decrease in net exports
Question #15
A the government should focus on long term growth
B the economy will fluctuate around its potential GDP
C the government should focus on reducing cyclical unemployment
D the government should focus on reducing the natural rate of unemployment
Question #16
A more variety of goods and services
B specialization
C higher prices
D greater competition