Exam 4

A  a tariff increases the amount of imports

B  a tariff raises the world price of a good

C  a tariff reduces tax revenue

D  a tariff lowers the world price of a good

A  Italy has the comparative advantage in producing cheese

B  Italy has the comparative advantage in producing wine

C  Italy has the absolute advantage in producing wine

D  France has the absolute advantage in producing cheese

A  low

B  high

C  rising

D  the same

A  to have a greater variety of goods and service

B  to decrease domestic jobs

C  to pay less for goods and services

D  to protect domestic jobs

A  wages and prices are sticky

B  wages and prices adjust quickly

C  the government can make the economy recover faster

D  people are well off and do not need assistance

A  wages cannot adjust when the economy slows

B  wages and prices are flexible

C  inflation is too high

D  the government is slow to detect a recession

A  1 box of cheese = 4 bottles of wine

B  1 box of cheese = 2 bottles of wine

C  1 box of cheese = 5 bottles of wine

D  1 box of cheese = 10 bottles of wine

A  they want nurture infant industries and protect them from foreign competition

B  trade creates more jobs

C  competition is beneficial

D  low income countries have high environmental standards

A  the economy is past full employment

B  the economy is at full employment

C  wages and prices are flexible

D  wages and prices are sticky

A  produce a good or service using fewer resources than another country

B  produce a good or service at a lower opportunity cost

C  produce a good or service using more resources than another country

D  produce a good or service at a higher opportunity cost

A  the economy will adjust on its own

B  the government can make the economy recover faster

C  fiscal policy is effective in fighting recessions

D  the government works efficiently

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 increase in spending,  has no impact on the economy

C  an initial decrease in spending, cycles repeatedly through the economy and has a larger impact than the initial dollar amount spent

D  an initial increase in spending, cycles repeatedly through the economy and has a smaller impact than the initial dollar amount spent

A  Indonesia has the comparative advantage in producing copper

B  Malaysia has an absolute advantage in producing both fish and copper

C  Indonesia has an absolute advantage in producing both fish and copper

D  Malaysia has the comparative advantage in producing fish

A  a decrease in net exports

B  an increase in government spending

C  a decrease in taxes

D  a decrease in interest rates

A  the government should focus on reducing cyclical unemployment

B  the government should focus on reducing the natural rate of unemployment

C  the government should focus on long term growth

D  the economy will fluctuate around its potential GDP

A  more variety of goods and services

B  greater competition

C  higher prices

D  specialization