BUS 313
Which of the following is FALSE about the transition from communism to capitalism in Russia and China?
Russia's transition was aided by the large number of workers it had in heavy industry
Which of the following is an example of financial asset investment?
a citizen of Japan buys a U.S. government bond.
Which of the following would cause a decrease in aggregate supply?
a decrease in productivity
If consumption spending decreases because people feel less confident about the future,
aggregate demand will shift to the left
Which of the following defines a flexible exchange rate?
an exchange rate determined by the market
When aggregate demand meets aggregate supply in the vertical portion of the aggregate supply curve,
an increase in demand will cause prices to rise but no change in output
Which of the following is the best explanation of exports and imports in China and India?
exports and imports are tied together, with exports depending on imported inputs and technology
Which of the following correctly explains how expansionary fiscal policy works?
government spending increases (G), consumer spending increases (C), total output increases (Y)
Measurements of TFP that the East Asian success story is based on:
high amounts of savings and investment
Which of the following is most important in determining the number of jobs in an economy?
macroeconomic policies
Which of the following correctly explains how expansionary money policy works?
money supply increases (M), interest rate decreases (i), aggregate demand increases (I), total output increases(Y)
If a country runs a current account surplus and national private savings equals domestic investment, then the combined governmental accounts:
must be positive
Under NAFTA, environmental standards are:
not harmonized
India's economic reforms have focused on:
privatizing state-owned enterprises and increasing efficiency
When explaining China and India's trade patterns,
proximity and GDP explain a significant portion
All of the following are true of the high-growth Asian economies EXCEPT:
restrictions on imports of capital goods have helped to favor the development of domestic technology
Estimates of U.S. job gains and losses due to free trade agreements
show mixed results, leading to no clear conclusion.
Which of the following is NOT a mechanism the high-growth Asian economies used to share wealth across all layers of society?
tax policies that strongly redistributed income from rich to poor
All else equal, if Canada raises its interest rates,
the U.S. demand for Canadian dollars decreases.
Which of the followings NOT a true statement about U.S. exports?
the manufacturing sector in the U.S. is no longer significant
The traditional view of fixed rate systems was that:
they improved inflation but were worse for growth.
The biggest disadvantage of a fixed exchange rate is the:
tradeoff between supporting the exchange rate and maintaining economic growth
