ECON 13 Study Guide - Final Guide: Cato Institute, Quantitative Easing, United Fruit Company

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ECON 13 Full Course Notes

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Is and econ 13 - final examination answers (correct answers starred * : skaperdas march 19, 2013. United states" gdp/capita is around the following percentage of china"s gdp/capita. a. b. c. d. e. 10,000: the industrial revolution began in, great britain, the united states, france. d. Japan: scandinavia, john can solve 20 math problems per hour while frank can only solve 17 math problems in the same time period. Nigeria. a and b: according to the 2009 data on gross. National income ( gni ) we examined: bangladesh has a higher gni per capita than china, nigeria has a higher gni per capita than india and china. If joe has a comparative advantage in producing shoes, what else do we know for certain? a. Joe has an absolute advantage in producing shoes: drew has an absolute advantage in producing shoes, drew has a comparative advantage in d. producing hats.

Related Questions

Please answer all of the following multiple choice questions... Thank you!

Hours to Produce One Unit
	Worker hours to produce yarn	Worker hours to produce fabric	Additional worker hours to produce fabric instead of yarn
Country A	8	12	?
Country B	4	13	?

Based on the data in the chart, which of the following scenarios presents the most efficient use of resources? (5 points)

	Country A produces yarn and fabric, and Country B imports both
	Country A produces yarn, and Country B produces fabric
	Country B produces yarn, and Country A produces fabric
	Country B produces yarn and fabric, and Country A imports both

	Worker hours to produce one unit of oil	Worker hours to produce one unit of natural gas
Brazil	8	4
Argentina	10	2
Mexico	7	3
United States	6	1

According to the chart, which country has an absolute advantage over the other countries in oil production? (5 points)

	Brazil
	Mexico
	Argentina
	United States

10.

U.S. companies have made fewer manufacturing contracts with China in the last few years, preferring other countries in the region. Which of the following is a potential reason? (5 points)

	China has most-favored-nation trade status with the United States.
	China has large reserves of cheap labor and can produce inexpensive goods.
	China's standard of living has increased, and workers are requesting more pay.
	Shipping costs from China over the Pacific Ocean have decreased.

11.

The U.S. government wants to restrict Nation A's access to weapons-making materials. Which of the following actions will it most likely take? (5 points)

	Establish a free-trade zone with Nation A
	Impose tariffs on certain goods imported from Nation A
	Institute an embargo on trade in certain items with Nation A
	Place a quota on certain types of goods Nation A can export

12.

Because the United States has an embargo on Cuba, (5 points)

	the United States regularly increases the taxes on Cuban imports
	Cuba exports the majority of Cuban products to American companies
	virtually no Cuban products are legally available in the United States
	Cuba must sell products directly to state governments in the United States

13.

Globalization increases the interdependency of the world's countries. Inflation in one country would most likely (5 points)

	not impact inflation in other countries
	cause deflation in other countries
	result in stagflation in other countries
	relate to inflation in other countries

1. An economic system is

a. a set of institutional arrangements used to allocate scarce resources.

b. the movement of capital between countries.

c. how wealth is distributed and created in a country.

d. the natural resource available.

e. none of the above.

2. Contemporary economic change in Eastern Europe was preceded by

a. declining economic performance.

b. political change.

c. the withdrawal of Soviet backing.

d. all of the above.

3. Prior to the onset of economic reform in the late 1980s, the Soviet Union and most Eastern European countries allocated resources primarily by means of

a. Markets.

b. national economic plans.

c. neither a nor b.

d. both a and b.

4. Prices in the planned socialist systems were generally set by

a. supply and demand forces in the market.

b. the state.

c. external forces through international trade.

d. none of the above.

5. A major political change in the former planned socialist economies has been

a. the end of the political domination of Communist regimes.

b. the strengthening of the Communist regimes in combination with economic decentralization.

c. the full implementation of Western-style democracy.

d. all of the above.

6. The modern approach to defining economic systems

a. is based on the âismsâ of capitalism and socialism.

b. emphasizes resource allocation arrangements over incentive systems.

c. defines economic systems according to a number of characteristics.

d. states that defining economic systems is impossible.

e. none of the above.

7. The major attributes of an economic system are

a. its population and capital resources.

b. its level of GDP.

c. its level of GDP per capita.

d. its economic policies.

e. none of the above.

8. One very important characteristic of organizations in the comparing of economic systems is

a. the nature of economies of scale.

b. whether they exhibit capitalism or socialism.

c. the use of computers in the organization.

d. the level of centralization or decentralization of decisions.

e. none of the above.

9. A planned economy is one in which

a. subunits are coordinated by directives formulated by a superior agency.

b. subunits are not induced by appropriate incentives to carry out plan directives.

c. market allocation is combined with planned allocation.

d. a ministerial system prevails.

e. none of the above.

10. Ownership rights may affect economic outcomes because

a. public and private owners may have different time preferences.

b. public ownership may mean more attention to social rates of return.

c. the distribution of income is affected by ownership arrangements.

d. answers a and b are correct. e. answers a, b, and c are correct.

11. Which of the following would not be classified as an economic-environmental factor?

a. Natural resource endowments

b. The size of the economy

c. The nature of decision-making arrangements

d. The economyâs per capita income

e. The economyâs labor force

12. If one finds that the planned socialist economies all have higher growth rates than capitalist countries, this shows that

a. planned socialism necessarily produces higher growth than capitalism.

b. planned socialism may produce higher growth than capitalism, ceteris paribus.

c. capitalism may produce higher growth than planned socialism, ceteris paribus.

d. capitalism necessarily produces higher growth than planned socialism.

e. both b and c are correct.

13. National priorities tend to be

a. the same for countries that have similar economic systems.

b. the same for all countries.

c. different for different countries.

d. completely unknown.

e. none of the above.

14. Economic growth measures

a. the increase in nominal income.

b. the increase in the volume of output on either a total or a per capita basis.

c. the growth of efficiency.

d. the growth of productivity.

e. none of the above.

15. A measure of economic instability is

a. the unemployment rate.

b. the inflation rate.

c. the business cycle.

d. the Lorenz curve.

e. all except d are correct.

16. In the real world, most economic systems are in fact

a. centralized systems.

b. mixed systems.

c. market systems.

d. planned systems.

17. Although economic reform is difficult to characterize with precision, reform in planned socialist systems has typically been thought of as

a. revolutionary or abrupt in character.

b. occurring gradually over time.

c. successful in most cases.

d. none of the above.

18. In the United States, social security transfers as a percentage of the gross national product have

a. increased.

b. decreased.

c. remained the same.

d. fluctuated but with a significant downward trend.

19. In the industrialized capitalist systems, taxes as a percentage of the gross national product have

a. increased.

b. decreased slightly.

c. decreased greatly.

d. remained the same.

20. In contemporary capitalist economic reforms, privatization means

a. expansion of private ownership of the means of production.

b. improvement of planning methods.

c. implementation of worker management.

d. none of the above.

brownmoose882

Question 3

According to Joseph Schumpeter, the theory of creative destruction describes a process by which

	A	some new products unleash a gale of destruction that drive other new products out of the market.
B		new products unleash a gale of destruction that drives old products out of the market.
C		new products are created by the destruction of capital.
D		the creation of new products never involves the destruction of old products.

Question 4

Which of the following countries had the highest GDP per capita in 2012?

		A Qatar
B		United States
C		Japan
D		Norway

Question 5

________ save a ________ of their income. This ________ capital in their economy and raises economic growth.

	A	Developing countries; large proportion; decreases
B		Developing countries; small proportion; increases
C		High-income countries; large proportion; increases
D		High-income countries; small proportion; increases

Question 6

The demand for loanable funds is determined by the willingness of ________ to borrow money to engage in new investment projects.

A		government
B		households
C		banks
D		firms

Question 7

The U.S. economy has been more stable since 1950.

True

False

Question 8

When the economy reaches a trough in a business cycle, which of the following will occur?

A		Income, production, and employment will continue to fall.
B		Income, production, and employment will begin to rise.
C		Income and production will rise, but employment will continue to fall.
D		Employment rises, but income and production will continue to fall.

Question 9

In a closed economy, what is the relationship between saving and investment?

A		Saving is greater than investment.
B		Investment is greater than saving.
C		Investment is equal to saving.
D		Investment may be greater or smaller than saving.

Question 10

The per-worker production function shows the relationship between ________ per hour worked and ________ per hour worked, holding ________ constant.

A		labor; real GDP; technology
B		capital; real GDP; technology
C		labor; capital; real GDP
D		capital; labor; real GDP

Question 11

New growth theory states that increases in ________ capital will result in ________ at the ________ level.

	A	knowledge; increasing returns to scale; firm
	B	physical; decreasing returns to scale; firm
	C	knowledge; decreasing returns to scale; economy
D		knowledge; increasing returns to scale; economy

Question 12

Which of the following is not a reason why the Industrial Revolution occurred when and where it did?

A		The British government was committed to upholding private property rights.
B		The British government was able to eliminate arbitrary increases in taxes.
C		The British government was able to more easily seize wealth.
D		Institutional changes by the British government helped protect wealth.

Question 13

Growth in real GDP per capita for the world economy was greatest during

A		the seventeenth century.
B		the eighteenth century.
C		the nineteenth century.
D		the twentieth century.

Question 14

Which of the following is a normative statement about economic growth?

A		Economic growth is associated with higher labor productivity growth.
B		Economic growth increases GDP per capita.
C		Economic growth hurts developing countries.
D		Foreign direct investment stimulates economic growth.

Question 15

The effect of a recession on a company like Whirlpool Corporation is such that

A		sales decline more sharply for Whirlpool as compared to firms that do not produce durable goods.
B		profits fall less sharply as compared to firms that do not produce durable goods.
C		the decline in sales is more short-lived as compared to firms that do not produce durable goods.
D		there is no difference in the impact of the recession on its profits as compared to firms that do not produce durable goods.

Question 16

For the recessions in the United States since the 1950s,

A		cyclical unemployment has been non-existent.
B		unemployment rises on average by about 1.2 percentage points 12 months after a recession begins.
C		unemployment falls on average by 2 percentage points 12 months after a recession begins.
D		unemployment rises on average about 5 percentage points 12 months after a recession begins.

Question 17

You are an economic advisor to the president. You are asked to recommend a policy to promote long-term economic growth in the economy. Which of the following policies would you choose?

A		a reduction in sales taxes
B		an investment tax credit
C		a reduction in taxes on luxury yachts
D		All of these

Question 18

In comparison to a government that runs a balanced budget, when the government runs a budget deficit,

	A	the equilibrium interest rate will fall.
	B	business investment will fall.
	C	household savings will fall.
	D	None of these

Question 19

If labor productivity growth slows down in a country, this means that the growth rate in ________ has declined.

A		labor force participation
B		the quantity of goods or services that can be produced by one hour of work
C		the working-age population
D		nominal GDP

Question 20

Policies to promote growth by increasing saving and investment work through

A		decreasing the supply of loanable funds, lowering the interest rate, raising the level of investment in physical capital.
B		increasing the supply of loanable funds, increasing the interest rate, raising the level of investment in physical capital.
C		increasing the supply of loanable funds, lowering the interest rate, lowering the level of investment in physical capital.
D		increasing the supply of loanable funds, lowering the interest rate, raising the level of investment in physical capital.

ECON 13 Study Guide - Final Guide: Cato Institute, Quantitative Easing, United Fruit Company

ECON 13 Full Course Notes

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