[{"id":214139,"question":"Mercantilism.","choices":[{"text":"Is the philosophy of free international trade.","value":"A"},{"text":"Was a system of export promotion and barriers to imports practiced by government .","value":"B"},{"text":"Was praised by Adam Smith in the Wealth of Nations","value":"C"},{"text":"Both a and c","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":214138,"question":"International trade is based o the notion that.","choices":[{"text":"Different currencies are an obstacle to international trade","value":"A"},{"text":"Goods are more mobile internationally than are resources","value":"B"},{"text":"Resources are more mobile internationally that are goods","value":"C"},{"text":"A country's exports should always exceeds its imports","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":214137,"question":"If the international terms of trade settle at a level that is between each country's opportunity cost.","choices":[{"text":"There is no basis for gainful trade for either country","value":"A"},{"text":"Both countries gain from trade","value":"B"},{"text":"Only one country gains from trade","value":"C"},{"text":"One country gains and the other country loses from trade","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":214136,"question":"The earliest statement of the principle of comparative advantage in associated with","choices":[{"text":"Adam Smith","value":"A"},{"text":"David Ricardo","value":"B"},{"text":"E . Heckscher","value":"C"},{"text":"Bertil Ohlin","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":214135,"question":"A sudden shift from import tariffs to free trade may induce short term unemployment in.","choices":[{"text":"Import competing industries","value":"A"},{"text":"Industries that are only exporters","value":"B"},{"text":"Industries that sell domestically as well as export","value":"C"},{"text":"Industries that neither import nor export","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":214134,"question":"International trade in goods and services tends to","choices":[{"text":"Increase all domestic costs and prices","value":"A"},{"text":"Keep all domestic costs and prices at the same level","value":"B"},{"text":"Lessen the amount of competition facing home manufactures.","value":"C"},{"text":"Increase the amount of competition facing home manufacturers","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214133,"question":"A feasible effect of international trade is that a","choices":[{"text":"Monopoly in the home market become an oligopoly in the world market","value":"A"},{"text":"Oligopoly in the home market becomes a monopoly in the world market","value":"B"},{"text":"Purely competitive firm in the home market becomes an oligopolistic","value":"C"},{"text":"Purely competitive firm in the home market becomes a monopolist","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":214132,"question":"increase foreign competition tend to.","choices":[{"text":"Intensify inflationary pressure at home","value":"A"},{"text":"Induce falling output per worker hour for domestic workers","value":"B"},{"text":"Place constraints on the wages of domestic workers","value":"C"},{"text":"Increase profits of domestic import competing industries.","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":214131,"question":"International trade is based on the idea that","choices":[{"text":"Exports should exceed imports","value":"A"},{"text":"Imports should exceed exports","value":"B"},{"text":"Resources are more mobile internationally than are goods","value":"C"},{"text":"Resources are less mobile internationally than are goods","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214130,"question":"The movement to free international trade is most likely to generate short term unemployment in which industries'.","choices":[{"text":"Industries in which there are neither imports nor exports","value":"A"},{"text":"Import competing industries.","value":"B"},{"text":"Industries that sell to domestic and foreign buyers","value":"C"},{"text":"Industries that sell to only foreign buyers","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":214129,"question":"International trade forces domestic firms to become more completive in terms of.","choices":[{"text":"The introduction of new products","value":"A"},{"text":"Product design and quality","value":"B"},{"text":"Product price","value":"C"},{"text":"All of the above","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214128,"question":"If a nation has an open economy it means that the nation.","choices":[{"text":"Allows private ownership of capital","value":"A"},{"text":"Has flexible exchange rates","value":"B"},{"text":"Has fixed exchange rates","value":"C"},{"text":"Conducts trade with other countries","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214127,"question":"International trade in good sand services is sometimes used as a substitute for all of the following except.","choices":[{"text":"Internationals movement of capital","value":"A"},{"text":"International movement of labor","value":"B"},{"text":"International movements of technology","value":"C"},{"text":"Domestic production of different goods and services.","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214126,"question":"A main advantage of specialization results from","choices":[{"text":"Economics of large scale production","value":"A"},{"text":"The specializing country behaving as a monoploidy.","value":"B"},{"text":"smaller production runs resulting in lower unit costs","value":"C"},{"text":"High wages paid to foreign workers","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":214125,"question":"A primary reason why nations conduct international trade is because.","choices":[{"text":"some nations prefer to produce one thing while others produce another.","value":"A"},{"text":"Resources are not equally distributed to all trading nations","value":"B"},{"text":"Trade enhances opportunities to accumulate profits","value":"C"},{"text":"Interest rates are not identical in all trading nations","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":214124,"question":"When the reserve requirement on checking deposits is 0.10 and the Federal Reserve purchases government securities values at Rs. 100,000, the MI money supply.","choices":[{"text":"Is unchaged","value":"A"},{"text":"Increase by Rs.100,000","value":"B"},{"text":"Increases by Rs. 1,000,000","value":"C"},{"text":"None of these","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":214123,"question":"How much of the Rs. 5 billion dollar increase in the government expenditures will be financed by bond sales.","choices":[{"text":"Rs.3.5 billion","value":"A"},{"text":"Rs.1.5 billion","value":"B"},{"text":"Rs. 4.9 billion","value":"C"},{"text":"Rs.2.8 billion","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":214122,"question":"How much of the Rs.5 billion dollar increase in government expenditures will be recouped in taxes.","choices":[{"text":"Rs.1 billion","value":"A"},{"text":"Rs.2 billion","value":"B"},{"text":"Rs.0.9 billion","value":"C"},{"text":"Rs.0.5 billion","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":214121,"question":"As a result of the increase in government expenditures disposable income increases by.","choices":[{"text":"Rs.10 billion","value":"A"},{"text":"Rs.9 billion","value":"B"},{"text":"Rs.20 billion","value":"C"},{"text":"Rs.5 billion","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":214120,"question":"Actual equilibrium is Rs. 1,500 billion and full employment is Rs. 2,500 MPC = 0.75 taxes are zero , and prices are adjustable To eliminate the observed deflationary gap , the government should.","choices":[{"text":"Increase G by Rs.1,000","value":"A"},{"text":"Decrease G by Rs.250","value":"B"},{"text":"Increase G by less than Rs.100","value":"C"},{"text":"Decrease G by more than Rs.250 but less than Rs.1000","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":214119,"question":"The Central Bank controls money and credit with the exception of.","choices":[{"text":"Controlling the money base through open market operations","value":"A"},{"text":"Controlling reserve requirements","value":"B"},{"text":"Setting the discount rate of interest","value":"C"},{"text":"controlling the stock market","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214118,"question":"When there is no change in central banking holding of international reserve balances a country's","choices":[{"text":"Trae balance always equals 0","value":"A"},{"text":"Current account balance always equals 0","value":"B"},{"text":"Capital account balance always equals 0","value":"C"},{"text":"Balance of payments always equal 0","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214117,"question":"If the original money supply is MSo and the original demand for money is MDo then","choices":[{"text":"The equilibrium interest rate and savings are 5% and 50","value":"A"},{"text":"The money supply is 200 and equilibrium income is 500","value":"B"},{"text":"The equilibrium interest rate and income are 5% and 600","value":"C"},{"text":"The speculative demand is 25","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":214116,"question":"A monetary action consistent with the central bank selling bonds in the open market would be.","choices":[{"text":"An increase in the reserve ratio","value":"A"},{"text":"A reduction in the discount rate of interest","value":"B"},{"text":"An increase in government spending.","value":"C"},{"text":"a reduction in excise taxes","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":214115,"question":"The equilibrium level of saving is.","choices":[{"text":"Rs.120","value":"A"},{"text":"Rs.75","value":"B"},{"text":"Rs.40","value":"C"},{"text":"Rs.80","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":214114,"question":"The equilibrium level of income is.","choices":[{"text":"Rs. 360","value":"A"},{"text":"Rs.600","value":"B"},{"text":"Rs.440","value":"C"},{"text":"Rs.500","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":214113,"question":"in The Liquidity trap region","choices":[{"text":"Fiscal policy is not effective","value":"A"},{"text":"Monetary policy is completely ineffective","value":"B"},{"text":"Monetary policy is completely effective","value":"C"},{"text":"Fiscal policy and monetary policy are equally effective","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":214112,"question":"To move from point E to point E1 is consistent with.","choices":[{"text":"Expectations of a constant price level","value":"A"},{"text":"Adaptive expectations that have no adjustment for the period immediately following a change in the actual price","value":"B"},{"text":"Rational expectations and NCM","value":"C"},{"text":"A and B","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214111,"question":"If the money supply change was correctly and fully anticipated for a change of M to MI new classical macroeconomics under the assumption of rational expectations would predict a movement from.","choices":[{"text":"Pont Eo to point E1","value":"A"},{"text":"Pont Eo to point E2","value":"B"},{"text":"Pont Eo to point E3","value":"C"},{"text":"Pont E3 to point E2","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":214110,"question":"An autonomous increase in the value of the domestic exchange rate.","choices":[{"text":"Increases output net exports and the interest rate.","value":"A"},{"text":"Decreases output net exports and the interest rate","value":"B"},{"text":"Decreases output and net exports and increases the interest rate.","value":"C"},{"text":"Increase output and decreases net exports and the interest rate.","value":"D"},{"value":"E"}],"correctAnswer":2}]