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A fall in labor costs will cause aggregate

29/10/2020 Client: arwaabdullah Deadline: 3 days

3. (TCO 5) A fall in labor costs will cause aggregate

a. supply to increase

b. demand to increase

c. supply to decrease

d. demand to decrease

5. (TCO 6) with an MPS of .3, the MPC will be

a. 1-.3

b. .3-1

c. 1/.3

d. .3

7. (TCO 7) The basic requirement of money is that it be

a. backed by precious metals--gold or silver

b. authorized as legal tender by the central government

c. generally accepted as medium of exchange

d. some form of debt or credit

8. (TCO 7) The Federal Reserve System of the U. S. is the country's

a. financial advisor

b. comptroller or accountant

c. central bank

d.deposit insurance provider

9. (TCO 7) When the Fed acts as a "lender of last resort", like it did in the financial crisis of 2007-2008 it is performing its role

a. controlling the money supply

b. setting the reserve requirements

c. being the bankers' bank

d. providing for check clearing and collection

11. (TCO 7) The difference between the Fed Behavior during the bank panics of 1930-1933 and the financial crisis of 2007-2008 is that the Fed

a. was very active during the former crisis, while it was basically passive during the latter crisis.

b. stood idly by during the former crisis, but took dramatic actions during later crisis

c. was not yet in existence during the 1930's

d. was much bigger institution in the 1930s than it is today

15. (TCO8) nation X has a comparative advantage in the production of product compared to nation Y when

a. it imposes a tariff on the importation of the product

b. its production possibilities curve expands, allowing it to produce more of the product

c. it is achieving full employment and is producing the maximum amount of the product

d. it has lower domestic opportunity cost of producing the product

16. (TCO 8) An excise tax on imported commodities is known as a

a. quota

b. tariff

c. export restriction

d. price ceiling

17. (TCO 8) Tariffs and quotas are most costly to consumers because

a. the price of imported goods fall

b. the supply of the imported good increase

c. imported competition increases for domestic goods

d. consumers shift purchase to higher-priced domestic goods

18. (TCO 8) The major beneficiaries of a tariff on a product are the

a. domestic producers of the product

b. domestic consumers of the product

c. workers engaged in trade, like transportation workers

d. foreign producers of the product

19. (TCO 8) about how many nations belong to the World Trade Organization as of 2010?

a. 35

b. 72

c. 153

d. 210

2. (TCO 9) If the united States wants to regain ownership of domestic assets sold to foreigners, it will have to

a. increase domestic consumption

b. increase its national debt

c. export more than it imports

d. import more than it exports.

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