ECO 372 WEEK 3 Quiz

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ECO 372 WEEK 3 Quiz

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ECO 372 WEEK 3 Quiz

ECO 372 WEEK 3 Quiz

WEEK THREE QUIZ

ECO/372

MACROECONOMICS

 

  1. In an economy that relies upon barter,
    1. tradedoesnotrequireadoublecoincidenceof
    2. scarceresourcesareallocatedjustaseasilyastheyareineconomiesthatdonotrelyupon
    3. thereisnoitemintheeconomythatiswidelyacceptedinexchangeforgoodsand
    4. Alloftheaboveare

 

  1. The existence of money leads to
    1. greaterspecializationinproduction,butnottoahigherstandardof
    2. ahigherstandardofliving,butnottogreater
    3. greaterspecializationandtoahigherstandardof
    4. neithergreaterspecializationnortoahigherstandardof

 

  1. Which of the following is a function of money?
    1. aunitofaccount
    2. astoreofvalue
    3. mediumofexchange
    4. Alloftheaboveare
  2. Which of the following functions of money is also a common function of most other financial assets?
    1. aunitofaccount
    2. astoreofvalue
    3. mediumofexchange
    4. Noneoftheaboveis

 

  1. When in France you notice that prices are posted in euros, this best illustrates money’s function as
    1. astoreof
    2. amediumof
    3. aunitof
    4. amethodof
  2. If the price level increased from 120 to 130, then what was the inflation rate?
    1. 1percent.
    2. 7percent.
    3. 0percent.
    4. 3percent.

 

 

  1. The term hyperinflation refers to
    1. thespreadofinflationfromonecountryto
    2. adecreaseintheinflation
    3. aperiodofveryhigh
    4. inflationaccompaniedbya

 

  1. In early 2008, the central bank of Zimbab we announced the inflation rate in that country had reached
    1. 60
    2. 80
    3. 220
    4. 24,000

 

  1. When the price level falls, the number of dollars needed to buy are presentative basket of goods
    1. increases,sothevalueofmoney
    2. increases,sothevalueofmoney
    3. decreases,sothevalueofmoney
    4. decreases,sothevalueofmoney

 

  1. The supply of money is determined by
    1. theprice
    2. theTreasuryandCongressionalBudget
    3. theFederalReserve
    4. thedemandfor

 

  1. Net exports of a country are the value of
    1. goodsandservicesimportedminusthevalueofgoodsandservices
    2. goodsandservicesexportedminusthevalueofgoodsandservices
    3. goodsexportedminusthevalueofgoods
    4. goodsimportedminusthevalueofgoods

 

  1. One year a country has negative net exports. The next year it still has negative net exports and imports have risen more than
    1. itstradesurplus
    2. itstradesurplus
    3. itstradedeficit
    4. itstradedeficitrose

 

 

 

 

  1. Suppose that a country imports $90 million worth of goods and services and exports $80 million worth of goods and What is the value of net exports?
    1. $170 million
    2. $80million
    3. $10million
    4. -$10 million

 

  1. Over the past five decades, the S. economy has become
    1. more
    2. more
    3. lesstrade-oriented.
    4. moreself-sufficient.

 

  1. Net capital out flow is defined as the purchase of
    1. foreignassetsbydomesticresidentsminusthepurchaseofdomesticassetsbyforeign
    2. foreignassetsbydomesticresidentsminusthepurchaseofforeigngoodsandservicesbydomestic
    3. domesticassetsbyforeignresidentsminusthepurchaseofdomesticgoodsandservicesbyforeign
    4. domesticassetsbyforeignresidentsminusthepurchaseofforeignassetsbydomestic

 

  1. The open-economy macroeconomic model takes
    1. GDP,butnotthepricelevelas
    2. thepricelevel,butnotGDPas
    3. boththepricelevelandGDPas
    4. thepricelevelandGDPasvariablestobedeterminedbythe

 

  1. In the open-economy macroeconomic model, the market for loan able funds equates national saving with
    1. domestic
    2. netcapital
    3. thesumofnationalconsumptionandgovernment
    4. thesumofdomesticinvestmentandnetcapital

 

  1. Other things the same, a lower real interest rate decreases the quantity of
    1. loanablefunds
    2. loanablefunds
    3. domestic
    4. netcapital

 

 

  1. Other things the same, an increase in the S. interest rate causes the quantity of loan able funds supplied to
    1. risebecausenationalsaving
    2. risebecausedomesticinvestment
    3. fallbecausenationalsaving
    4. fallbecausedomesticinvestment

 

  1. Other things the same, an increase in the S. real interest rate induces
    1. Americanstobuymoreforeignassets,whichincreasesS.netcapitaloutflow.
    2. Americanstobuymoreforeignassets,whichreducesS.netcapitaloutflow.
    3. foreignerstobuymoreS.assets,whichreducesU.S.netcapitaloutflow.
    4. foreignerstobuymoreS.assets,whichincreasesU.S.netcapitaloutflow.

 

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ECO 372 WEEK 3 Quiz