[{"id":214679,"question":"The asset market approach a more helpful in explaning.","choices":[{"text":"why excahnge rates remain quite stable","value":"A"},{"text":"Why governments change their money supplies.","value":"B"},{"text":"Long term exchange rate movement.","value":"C"},{"text":"Short term exchange rate movement.","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214678,"question":"Starting from a position where the nation's money demand equals the money supply and its balance of payments is it equilibrium, economic theory suggest that the nation's balance of payments would more into a surplus position if there occurred in the nation a.","choices":[{"text":"Decrease in the money supply","value":"A"},{"text":"Increase in the money supply","value":"B"},{"text":"Decrease in the money demand","value":"C"},{"text":"any of the above","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":214677,"question":"The relation ship between the exchange rate and the prices of tradable goods is known as the.","choices":[{"text":"Purchasing power parity theory","value":"A"},{"text":"Asset markets theory","value":"B"},{"text":"Monetary theory","value":"C"},{"text":"Balance of payments theory","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":214676,"question":"Currency speculations is_________ if speculators bet against market forces that cause exchange functions, thus moderating such fluclutions.","choices":[{"text":"Destabilizing","value":"A"},{"text":"Stabilizing","value":"B"},{"text":"Inflationary","value":"C"},{"text":"Deflationary","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":214675,"question":"Riskless transactions to take advantage of profit opportunities due to a price differential or a yield differential in excess of transaction costa are called","choices":[{"text":"deferential actions","value":"A"},{"text":"Cash transactions,","value":"B"},{"text":"Arbitrage","value":"C"},{"text":"Forward transactions","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":214674,"question":"Comparative advantage is determined by","choices":[{"text":"Actual difference in labor productivity between countries.","value":"A"},{"text":"Relative difference in labor productivity between countries.","value":"B"},{"text":"both a and b","value":"C"},{"text":"Neither a and b","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":214673,"question":"Absolute advantage is determined by.,","choices":[{"text":"Actual difference in labor productivity between countries.","value":"A"},{"text":"Relative difference in labor productivity between countries.","value":"B"},{"text":"Both a and b","value":"C"},{"text":"neither a and b","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":214672,"question":"In the classical model of Ricardo the direction of trade is delemined by.","choices":[{"text":"Absolute advantage","value":"A"},{"text":"Comparative advantage","value":"B"},{"text":"Physical advantage","value":"C"},{"text":"Which way the wind blows","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":214671,"question":"The earliest statement of the principle of comparative advantage is associated with.","choices":[{"text":"Adam Smith","value":"A"},{"text":"David Ricardo","value":"B"},{"text":"Eli Heckshcer","value":"C"},{"text":"Berti Ohlin","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":214670,"question":"a nation with a current account deficit will be","choices":[{"text":"Lending more money to other nations","value":"A"},{"text":"Experiencing a surplus in exports of goods and services.","value":"B"},{"text":"Reducing its indebtedness to other nations","value":"C"},{"text":"Going further into debt with other nations","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214669,"question":"International trade is based on the idea that.","choices":[{"text":"Exports should exceed imports","value":"A"},{"text":"Imports a 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":214668,"question":"International trade forces domestic firms to become more competitive in terms of.","choices":[{"text":"The introduction of new products","value":"A"},{"text":"Product design and quantity","value":"B"},{"text":"Product price","value":"C"},{"text":"All of the above","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214667,"question":"International trade in goods and services is sometimes used as a substitute for all of the following except.","choices":[{"text":"International movements of capital","value":"A"},{"text":"International movement of labor","value":"B"},{"text":"International movement of technology","value":"C"},{"text":"Domestics production of different goods and services","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214666,"question":"The central economic problem in an economy refers to.","choices":[{"text":"The prevalence of unemployment","value":"A"},{"text":"To allocate scarce resources between competing uses.","value":"B"},{"text":"Consumers having less money than they would like","value":"C"},{"text":"ensure that production costs are converted by sales revenue.","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":214665,"question":"If an economy experience an increase in productivity it means that.","choices":[{"text":"the level of output has risen","value":"A"},{"text":"Employees are working harder than before","value":"B"},{"text":"Output per unit of input has risen","value":"C"},{"text":"Technical change has taken place","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":214664,"question":"The multiplier for a change in social security benefits is equl to the multiplier for a change in the same direction in salaries of Evanston police officers tiems.","choices":[{"text":"the marginal propensity to save","value":"A"},{"text":"Minus the marginal propensity to save","value":"B"},{"text":"The marginal propensity to consume","value":"C"},{"text":"Minus the marginal propensity to consume","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":214663,"question":"Which provides the best explanation of the failure of many poor countries to experience economic growth as rapid as the rich countries..","choices":[{"text":"Classical growth theory","value":"A"},{"text":"Neoclassical growth theory","value":"B"},{"text":"New growth theory","value":"C"},{"text":"Market failure","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214662,"question":"Depreciation is.","choices":[{"text":"A decrease in the stock of capital","value":"A"},{"text":"Gross investment","value":"B"},{"text":"Net investment","value":"C"},{"text":"An increases in the stock of capital","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":214661,"question":"Which of the following NOT a source of economic growth.","choices":[{"text":"Investment in new capitals","value":"A"},{"text":"Labor productivity","value":"B"},{"text":"Investment in human capital","value":"C"},{"text":"Technology advances","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":214660,"question":"Productivity can grow.","choices":[{"text":"If capital per hour of labor increases.","value":"A"},{"text":"If there are no technological advances.","value":"B"},{"text":"If capital per hour of labor decreases","value":"C"},{"text":"If real GDP per hour labor decrease and capital per hour of labor increases.","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":214659,"question":"The productivity curve","choices":[{"text":"Is given by the labor productively","value":"A"},{"text":"Shows the change in real GDP per hour of labor as the amount of capital per hour labor changes","value":"B"},{"text":"Shows the change in technology","value":"C"},{"text":"Is given by the equation Y = F ( L,K, T)","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":214658,"question":"A decrease in lump sum taxes is an examples of.","choices":[{"text":"Contractionary fiscal policy","value":"A"},{"text":"Expansionary fiscal policy","value":"B"},{"text":"A change in induced taxes","value":"C"},{"text":"A and c","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":214657,"question":"the difference between actual and planned expenditure is equal to.","choices":[{"text":"X -M","value":"A"},{"text":"M- X","value":"B"},{"text":"Unplanned inventory change","value":"C"},{"text":"Excess reserves of depository institutions.","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":214656,"question":"In Balance of payments accounting tourism and travel are classified in the","choices":[{"text":"Merchandise trade account","value":"A"},{"text":"Services account","value":"B"},{"text":"Unilateral transfers account","value":"C"},{"text":"Capital account","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":214655,"question":"In the short run an increase in the quantity of money ______ real GDP and _ the price level.","choices":[{"text":"increases ; raises","value":"A"},{"text":"does not change ; lowers","value":"B"},{"text":"decreases ; raises","value":"C"},{"text":"decrease ; lowers","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":214654,"question":"The larger the required reserve ratio the.","choices":[{"text":"Smaller is the deposit multiplier","value":"A"},{"text":"Larger is the deposit multitier","value":"B"},{"text":"Larger is the amount of total deposits that can created from a new deposit","value":"C"},{"text":"Larger is the amount of total money that can be created from a withdrawal","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":214653,"question":"Your checking account is","choices":[{"text":"An asset for you and a liability for your bank","value":"A"},{"text":"A liability for you and an asset for your bank","value":"B"},{"text":"An asset for both you and your bank","value":"C"},{"text":"A liability for both you and your bank","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":214652,"question":"According to the crowding out effect, a there is a government deficit, the real interest rate will.__________ and investment will_________","choices":[{"text":"rise ; rise","value":"A"},{"text":"fall ; rise","value":"B"},{"text":"rise ; fall","value":"C"},{"text":"fall ; fall","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":214651,"question":"The investment demand curve shifts right ward if","choices":[{"text":"The real interest rate falls","value":"A"},{"text":"Savers increase their thriftiness","value":"B"},{"text":"The expected profit rate increases.","value":"C"},{"text":"The economy moves into a recession","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":214650,"question":"Accordant the wealth effect , an increase i the price level _______ real wealth and ____ consumption expenditure.","choices":[{"text":"Increase, Increases.","value":"A"},{"text":"Increases ; decreases","value":"B"},{"text":"decreases ; increases","value":"C"},{"text":"decreases ; decreases","value":"D"},{"value":"E"}],"correctAnswer":4}]