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