- In a free market system, the government:
A. Is not needed
B. Directs production and distribution plans
C. Only establishes and protects property rights
D. Regulates key production industries such as oil and utilities
E. Redistributes all economic profit earned - If California and New York both produced wine and cheese, how would we be able to determine production
advantages?
A. We would need to know the tax rate in both states.
B. We would need to know what opportunity costs each state has in producing wine and cheese.
C. We would need to know how much wine and cheese each state produces in a day.
D. We cannot determine any production advantages for these states.
E. We would need to know if California imports its wine. - If total exports exceed total imports, what is the United States experiencing?
A. A balance of payments deficit
B. A balance of payments surplus
C. A balance of trade deficit
D. A balance of trade surplus
E. A budget surplus - If Americans decide to buy less English tea:
A. The demand for England’s pound will shift to the right.
B. The demand for England’s pound will shift to the left.
C. The supply of England’s pound will shift to the left.
D. The demand for U.S. dollars will shift to the left.
E. The supply of U.S. dollars will shift to the right.
10. Labor-intensive products are likely to be exported by countries:
A. With a small population
B. With a highly skilled labor force
C. With many unskilled workers
D. That have few raw materials
E. That have abundant capital resources- The main reason behind creating barriers for the importation of goods and services from abroad is to:
A. Increase economic efficiency
B. Reduce the prices of domestically produced goods
C. Help expand the exportation of goods
D. Benefit from special interest groups
E. Lower the cost of producing goods
Part III: Microeconomics