econ final

the membership of the WTO includes about ___ nations

150

If the quantity of financial capital supplied is equal to the quantity of financial capital demanded then, the national savings and investment identity is written as:

S+(M-X)=I+(G-T)

which of the following is the best example of a quota

a limit imposed on the number of mens suits that can be imported from a foreign country

a rule that every imported product must be opened by hand and inspected with a magnifying glass, by one of just three government inspectors available at any given time might be referred to as

a non tariff barrier

a tariff differs from a quota in that a tariff is

a tax imposed on imports, whereas a quota is an absolute limit to the number of units of a good that can be imported.

during a recession, if a government uses an expansionary fiscal policy to increase GDP, the

aggregate demand curve will shift to the right

the government can ____ in the form of ____ to increase the level of aggregate demand in the economy

an expansionary fiscal policy, an increase in government spending

are a form of tax and spending rules that can affect aggregate demand in economy without any additional change in legislation

automatic stabilizers

If the state of Washington's government collects $75 billion in tax revenues in 2013 and total spending in the same year is $74.8 billion, the result will be a:

budget surplus

when governments are borrowers in financial capital markets, which of the following is least likely to be a possible source of the funds from a macroeconomic point of view?

central bank prints more money

Ricardian equivalence means that

changes in private savings offset any changes in the government deficit.

when the government passes a new law the explicitly changes overlal tax or spending levels its enacting

discretionary fiscal policy

the infant industry argument for protectionism suggest that an industry must be protected in the early stages of its development so that

domestic producers can attain the economies of scale to allow them to compete in world markets

assume the laws have been passed that require the federal government to run a balanced budget. During a recession, the government will want to implement ____, but may be unable to do so because such a policy would____

expansionary fiscal policy, lead to a budget deficit

from a macroeconomice point of view, which of the following is a source of demand for financial capital?

government borrowing

a ___ is one economic mechanism by which government borrowing can crowd out private investment

higher interest rate

an import quota or tariff on French wine that raises the prices for wine will probably

hurt domestic wine drinkers but help domestic wineries, which will gain from the higher prices

an import quota does which of the following

increases the price of the domestic goods to consumers

in a market oriented economy, private firms will undertake most of the ___ and ____ should seek to avoid a long series of large budget deficits that might crowd out such investment

investment in physical capital, fiscal policy

economists would say tariffs

limit voluntary exchanges.

a prolonged period of budget deficits may lead to

lower economic growth

are ways that a nation can draw up regulations, inspections, and paperwork to make it more costly or difficult to import products

nontariff barriers

if a government decides to finance an investment in ____ with higher taxes or _____ in other areas, it need not worry that it is crowding out private investment

public physical capital, lower government spending

If government tax policy requires Peter to pay $15,000 in tax on annual income of $200,000 and Paul to pay $10,000 in tax on annual income of $100,000, then the tax policy is:

regressive

There are nontariff barriers in the form of _______________ regulations, in which certain textiles are made in the United States, shipped to other countries, combined in making apparel with textiles made in those other countries—and then re-exported back to the United States at a lower tariff rate.

rules of origin

The time lag for monetary policy is typically ________________ the time lag for fiscal policy.

shorter than

most developed countries, the government plays a large role in society investment in human capital through

the education system

Tariffs result in a decrease in consumer surplus because:

the price of the protected good increase and quantity consumed decreases

in the national savings and investment identity framework, an inflow of savings from abroad is, by definition, equal to

the trade deficit

can set the stage for international financial investors first to send their funds to a country and cause an appreciation of its exchange rate and then to pull their funds out and cause a depreciation of the exchange rate and a financial crisis as well

trade balance

a ____ often results in an outflow of financial capital leaving the domestic economy and being invested in the global economy?

trade surplus

a government collects 70 billion quarterly in tax revenue. each year it allocates 15 billion to the justice system and 29 billion for the administrative costs. what percentage of its total annual tax revenue is left for allocation to the remaining categories of government spending?

84.29 percent

A typical ____________________________ fiscal policy allows government to decrease the level of aggregate demand, through increases in taxes.

contractionary

If individual income tax accounts for more total revenue than the payroll tax in the U.S., why would over half the households in the country pay more in payroll taxes than in income taxes?

income tax is a progressive tax

a new american import quota on imported steel would be likely to

increase american production of steel