Econ Exam

according to Hazlitt which of the following would be consequences of the United States placcing a new tariff on foreign sweaters, resulting in the creation of a domestic sweater industry

- american consumers would be forced to subsidize this industry - there would be no net addition to american industry or employment

which of the following would be hurt by a weak dollar

- an American company that buys steel from China - an American consumer buying products from England - and American traveling to Germany

which of the following are possible causes of a higher unemployment rate

- cyclical fluctuations in the level of national spending - changes in the skills needed by employers - people changing jobs

trade barriers are harmful to which of the following groups

- foreign producers in the affected industries - domestic consumers

which of the following are challenging for entrepreneurs

- high financial commitment - high levels of stress - high time commitment

inflation has a negative impact on which of the following groups

- people with a lot of savings - people living on a fixed income

list three of the four main incentives of entrepreneurship

- profit - independence - pursing a passion - helping others

what organizations are responsible for regulating financial markets in the US

- securities and exchange commission - federal reserve system

hazlitts arguments against tarriffs are directed against which of the following fallacies

- that tariffs raise wages - that tariffs provide employment - that tariffs protect the American standard of living

what happens whan all nations specialize in the areas in which they have comparative advantages

- the global standard of living increases - total world production increases

which of the following are disadvantages or corporations

- their owners are subjected to double taxation - they are more complicated and expensive to establish than other business structures

which of the following are advantages of partnerships

- their owners dont have to pay any special business taxes - they are generally easy and inexpensive to start - their owners can share responsiblities based on their different skills

which of the following are disadvantages of sole proprietorships

- their owners have unlimited personal liability - their owners usually have linited financial resources

which of the following are advantages of cooperatives

- their owners often get discounts on the goods and services produced by the cooperative - their owners dont have personal liability for the business - their owners all have a say in how the business is run

According to Hazlitt, many proponents of inflation realize it will decrease the purchasing power of money and increase the price of goods and services. what are reasons these proponents of inflation want inflation anyway

- they believe it will stimulate imports and discourage exports - they believe it will jump start industry and lead to full employment - the believe it will improve the position of creditors as a compared with debtors -they believe its an essential measure to cure a depression

which of the following are reasons that trade barriers are established

- to apply diplomatic pressure to a foreign government - to strengthen national defense - to protect domestic industries that would be hurt by free trade

which of the following are main goals of the Securities and exchange Commission

- to protect investors - to ensure that financial markets are fair, and efficient

in the US the highest level of inflation since the Great Depression occurred in 1979. What was the percentage of inflation in 1979

13%

at the height of the Great Depression in 1933 the unemployment rate reached a high of

24.9%

from 2009 to 2020 the exchange rate between the euro and the US dollar varied over time. During that time the number of euros you wouldve recieved for the 100 ranged from

70-95 euros

in one sentence, define the term absolute advantage

Absolute advantage is when one nation is able to produce a product at a lower cost then the other

in the US the most common way to measure the effect of inflation in the CPI which stands fro

Consumer Price index

Which verse says, "There is nothing better for a person than that he should eat and drink and find enjoyment in his toil?"

Ecclesiastes 2::24

which verse says, "in the same way, let your light shine before others, so that they may see your good works and give glory to your Father who is in heaven"?

Matthew 5:16

established in 1994 this treaty created of free trade between Canada, Mexico, and the United States

NAFTA

the largest stock market in the world is the

New York Stock Exchange

if Country A can produce wheat at a lower cost than Country B, the Country A has a _____ advantage in wheat production

absolute

who wrote in defense of free trade "in every country it always is and must be the interest of the great body of the people to buy whatever they want of those who sell it cheapest

adam smith

which of the following would be hurt by a strong dollar

an american farmer who exports corn from the middle east

in the video about entrepreneurship why was the owner of Clean & Mean able to craft her work schedule in a way that allowed her to go to the mall with her mom on Friday mornings

because of the level of independence offered by entrepreneurship

which presidential candidate issued a universal jobs guarentee during the 2020 democratic primary

bernie sanders

entrepreneurs develop new products and start new businesses by

bringing natural, human, and capital resources together

Hazlitt writes the most obvious error on which the appeal of inflation rests is

confusin money with wealth

when businesses raise prices to cover increasing costs it results in

cost pull inflation

deflation

decrease in general price

one potential cause of unemployment in seasonal fluctuations in

demand

monetary inflation can create a chain reaction that results in even more inflation. This occurs because monetary inflation can cause _____ when people recognize that the value of their money is going to decline in the future

demand pull inflation

when demand for goods and services becomes greater than supply it results in

demand pull inflation

hazlitt writes that the fundamental fallacy of looking only at certain groups instead of at everyone "is an almost inevitable result" or what

division of labor

one way that nations can control the value of their currency is by establishing a ____ in which the value of a currency is set at a specific value relative to another currency or some other measure of value

fixed exchange rate

Hazlitt argues that "nothing is easier to achieve than full employment" when its "taken as an end to itself" instead of being tied to the goal of

full production

hazlitt writes that economics should be concerned not only with some special interest in the short run but with the ____ interest in the long run

general

histrically many countries used to fix their currency to a set amount of

gold

name four countries that the United States has a free trade agreement with

guatemala canada mexico peru

which of the following can discourage the creation of new businesses

high tax rates

which of the following scenarios would likely result in demand-pull inflation

increased government spending

because of _____ the worlds nations have becoming increasingly interdependent economically

increased specialization

if someone trades a stock based on confidential nonpublic knowledge about that stock they have sommitted

insider trading

Hazlitt admits that inflation might sometimes be able to correct the causes of an economic depression but that is a dangerous method because

it makes its corrections not openly and honestly but by the use of illusion

when american companies move production overseas, it is called

offshoring

when American companies send work to businesses or workers in other countries it is called

outstanding

a business with two or more owners is called a

partnership

a limit on the quantity of a product thats allowed into a nation is called a

quota

hazlitt writes that economics is a science of recognizing ____ consequences

secondary

in Nearing Home, Billy Graham writes that "someone who brags about working seventy or eighty hours a week" has become a ____ of his of her job

slave

proverbs 19:15 says, "slothfulness casts into a deep ____ and an idle person will suffer hunger

sleep

in adam smiths theories free trade was considered as one aspect of the _____ if labor

specialization

in chapter 9 of Economics in one lesson Hazlitt discusses that there is often a fear that there wont be enough jobs for soldiers when they return to the workforces after a war. Hazlitt admits that it may require some time for private industry to provide jobs for all these new workers. he writes that in the past the chiefly remarkable thing about getting jobs for all the former soldiers has been the ______ with which the process was accomplished

speed

in the story about Milton Friedman visiting an overseas construction site Friedman suggesdts that more jobs could be created by taking away the workers shovels and giving them

spoons

Of the following investments, which has historically had the best performance over the long term but suffers from more volatility

stock

when a nation exports more goods than it imports it has a trade

surplus

list the three economic goals that the US federal government seeks to achieve

the US federal government seeks to keep stable prices, increase the nations GDP, and lower unemployment rates

what is one key element that encourages people to trade

the ability to buy a particular good from someone else cheaper than it costs to make it yourself

why do politicians often establish trade barriers even through the barriers usually do more harm then good

they are incentivized to create policies that disperse costs over a large number of people but benefit small, powerful groups

what does Hazlitt say is the goal of economic science

to see the problem as a whole and not in fragments

the justification for public jobs like police officers, firefighters, judges, and legislators does not consist in the purchasing power they possess by virtue of being on the public payroll but instead consists in the ____ of their services

utility

in the past, the United States has been so focused on exporting goods that they gave other nations loans to pay for the goods American exported to them. But if these loans are never repaid in means that

we are giving to goods away

when we make a voluntary trade, we are exchanging one item for another one item for another because

we value the item acquired more than what we're giving up

genesis 2:25 says, "the Lord God took the man and put him in the garden of Eden to ___ it and keep it"

work