Money, Banking and Monetary Policy - PASS
23 important questions on Money, Banking and Monetary Policy - PASS
1) The fundamental force that drives international trade is
A) absolute advantage.
B) importation duties.
C) the advantage of execution.
D) export advantage.
E) comparative advantage.
4) A country
A) imports those goods in which it has a comparative advantage.
B) exports those goods in which it has a comparative advantage.
C) imports goods produced in countries with lower wage rates.
D) exports goods produced by domestic industries with low wages relative to its trading partners.
E) B and D are correct.
5) Which of the following is not a source of government revenues?
A) personal income taxes
B) transfer payments
C) corporate income taxes
D) indirect taxes
E) investment income
- Higher grades + faster learning
- Never study anything twice
- 100% sure, 100% understanding
For my 1st exam I got a C. Then, I started looking for ways to learn better and I came across Study Smart. Since then I have scored a A+, A, A- and another A. I highly recommend it to everyone who wants to hear it. I am so happy with it!!
I was struggling to finish all my first-year subjects for 3 years. Then I discovered Study Smart, which helped me to finish all of them within 3 months.
Because of StudySmart, things are going well in many ways. Before, I always had study stress and no time for anything. Now I feel calm and confident (because of the program). I used to score a B, now I usually score an A or A+.
Hey Chris, I really want to thank you very much for developing the platform, I usually got around C for my exams, now I scored an A+, an A and a A- !!
Since using Study Smart, my average has increased significantly. I even completed a statistics course with a A+ while I'm bad at statistics. I took on extra courses this year, because of Study Smart. Thanks so much!
Ever since I started studying with StudySmart I passed all my exams !!! No more re-sits!! At first, I was happy with a pass and now I only get good grades. Many thanks!
I aced all the courses I studied with Study Smart. For law, I first scored a D, and now an A! I’m 100% sure that I’ll pass all the courses I study with Study Smart.
I always thought I studied well. My grades were fine. I could never have imagined that applying these study skills would have such a huge and direct impact on my grades, my speed and the pleasure I have in learning.
For the first time, I finally feel totally confident about the way I learn. I have the perfect overview and make great progress in terms of speed and the grades I get. Thanks, Chris!
I immediately started to enjoy learning again, and my grades soared. All of a sudden, everything went better. I highly recommend Study Smart to all students..
Being able to create my materials online made the process of studying so much smoother and quicker. I no longer have to spend a huge amount of my time on creating my summaries.
At first, my notes were a mess. Now I use Study Smart to take my notes in a perfectly structured way. It helps me to save a lot of time and do other things I enjoy.
Students that study with Study Smart get better grades. The system applies all the learning methods in such a way that both well-performing students and students who struggle perform much better.
Hi Chris, I would like to thank you very much. Last year I scored C on a course, and this year I got an A+ thanks to your method! Thank you very much!
The largest effect is that my child is more enthusiastic about school! Every parent wants their children to be happy at school, Study Smart made it happen.
In high school, I failed several exams, and that has really changed now. I actually needed this tool very much back then. Since I started studying with StudySmart, I haven't had any D's. My average score is now an A and those are results I would have never had in the past
With my old method, I passed only 3 out of 8 courses. Since I started taking my notes digitally in Study Smart, I have passed all my courses on the first try. For me, StudySmart takes away the stress of wondering if I will pass or not.
Thanks to StudySmart, I passed all my exams, and with better grades than before! On top of that, I have mastered a very good study method now, which I am confident will help me earn my degree.
6) Canada produces both lumber and wine. Canada exports lumber and imports wine. The rest of the world imports Canadian lumber and exports wine to Canada. When Canada exports lumber to the rest of the world and the rest of the world exports wine to Canada ________.
A) lumber producers in the rest of the world lose and wine producers in the rest of the world gain
B) Canada's lumber producers gain
C) Canada's wine producers lose
D) all of the above
E) none of the above
7. Voluntary trade improves standards of living by moving us from self-sufficiency to
A. improving our opportunity cost
B. transferring mutual benefits
C. Specializing and trade
D. reducing our opportunity cost
E. improving our comparative advantage
8. The government of Ricardia's budget lists the following projected revenues and outlays: $25 million in personal income taxes, $15 million in corporate income taxes, $5 million in indirect taxes, $2 million in investment income, $30 million in transfer payments, $12 million in government expenditure, and $8 million in debt interest. Ricardia has a government budget
A) surplus of $3 million.
B) surplus of $57 million.
C) surplus of $13 million.
D) deficit of $13 million.
E) deficit of $3 million
9. Which of the following is NOT a form of government protectionism
A. Tariffs
B. import quotas
C. Domestic Subsidy
D. Terms of trade
10. The policies of the World Bank and the International Monetary Fund are supported by
- the "No —Left Alone, Markets Fail Often" camp.
- those who favour a hands-on view.
- anti−globalization critics.
- those who favour a hands-off view.
- Those who believe markets fail often
11) A tax that is imposed by the importing country when an imported good crosses its international boundary is called
A) an import quota.
B) dumping.
C) a voluntary export restraint.
D) a tariff.
E) a sales tax.
12) Tariffs and import quotas differ in that
A) one is a form of trade restriction, while the other is not.
B) one is a tax, while the other is a limit.
C) one is imposed by the government, while the other is imposed by the private sector.
D) one is legal, while the other is not.
E) one increases imports, while the other decreases imports.
13) Which of the following is not a reason that globalization is speeding up?
A.falling costs for both transportation and communications technologies
B. the elimination of government barriers to trade
C. decreasing tariffs, quotas, and domestic subsidies
D. free trade agreements between countries
E. increased protectionist policies amongst countries
14) Tariffs and import quotas both result in
A) lower levels of domestic production.
B) the domestic government gaining revenue.
C) lower levels of imports. (Lower level of inputs)
D) higher levels of domestic consumption.
E) an increase in demand.
15) Both the hands−off and hands−on positions agree that
government failure is worse than market failure.
government intervention is necessary.
Specialization and trade can cause poverty and misery in import−competing industries.
there is political pressure for globalization.
There are no social trade offs for specialization and trade
16) The Laffer Curve has been criticized by mainstream economists because
A) there is no theoretical possibility of higher tax rates leading to lower tax revenues.
B) higher tax rates do not create negative incentive effects.
C) tax cuts are just spent, not saved as predicted by the theory.
D) savers look only at real interest rates, not nominal interest rates.
E) empirically, tax cuts have not led to higher tax revenues.
17) In trade negotiations at the World Trade Organization (WTO) developed countries want
A. reduced tarrifs, quotas and subsidies on products they export
B. increased tarrifs, quotas and subsidies on products they export
C. expanded access to Western markets for products they export
D. increased tarrifs, quotas and subsidies on products they import
18) Free market conditions on loans and assistance from the World Bank and IMF to developing countries did not include:
A. crackdown on intellectual property
B. crackdown on knockoff products
C. elimination of protectionist tariffs and quotas
D. enforcement of contracts and property rights
E. the issue of human rights
19) Tom gave Jerry 12 kilograms of cheese and received 3 of Jerry’s fish in return. The terms of trade for 1 of Jerry’s fish is
A. 3 kilograms of cheese
B. 0.25 fish
C. 2 kilograms of cheese
D. 4 kilograms of cheese
E. 2 kilograms of fish
20). When new international markets open up, the winners are:
A. Canadian consumers and exporters
B. businesses and workers in import-competing industries
C. homeowners and Canadian consumers
D. workers in import-competing industries and Canadian exporters
21) Which of the following are valid reasons advanced by almost all economists? Protection
A) saves jobs.
B) prevents rich countries from exploiting developing countries.
C) is a good way for governments in developed nations to raise revenue.
D) penalizes lax environmental standards.
E) Economists would not support any of the above reasons.
23. Everything else remaining the same, as the economy enters an expansion,
A) tax revenues rise and transfer payments fall.
B) tax revenues and transfer payments fall.
C) tax revenues and transfer payments rise.
D) tax revenues fall and transfer payments remain constant.
E) transfer payments and interest on the debt rise.
24. Consider the economy of NoTax, where the multiplier is 2.5. If the government desires to shift the AD curve rightward by $5 billion, the correct increase in government expenditure is
A) $2 billion.
B) $2.5 billion.
C) $3 billion.
D) $7.5 billion.
E) $8.33 billion.
25. If the budget deficit is $50 billion and the structural deficit is $10 billion, the cyclical deficit is
A) $10 billion.
B) $40 billion.
C) $60 billion.
D) $50 billion
E) $20 billion.
26. When real GDP equals potential GDP of $12 trillion, the budget deficit is $1 trillion. Real GDP actually equals $14 trillion and the budget surplus is $3 trillion. The economy has a structural ________ and a cyclical ________.
A) deficit of $1 trillion; surplus of $4 trillion
B) deficit of $1 trillion; surplus of $2 trillion
C) surplus of $4 trillion; deficit of $1 trillion
D) surplus of $3 trillion; surplus of $2 trillion
The question on the page originate from the summary of the following study material:
- A unique study and practice tool
- Never study anything twice again
- Get the grades you hope for
- 100% sure, 100% understanding
