ECON 7200 QUIZ 12. Top Grade (The University of Adelaide)

Document Content and Description Below

ECON 7200 QUIZ 12. Top Grade (The University of Adelaide) | Question 1 The supply of dollars in exchange for yen will decline, if, ceteris paribus: Question 2 If the current account balance is negativ... e: Question 3 Refer to Figure 18.3 for the following qu estion(s). Figure 18.3. Since 1953, the USA has imposed a quota to limit imports of peanuts into the country. This figure illustrates the impact of the quota. (One pound = approximately 0.45 kilograms). Refer to Figure 18.3. What is the value of the deadweight loss as a result of the quota? Question 4 Refer to Figure 19.3 for the following question(s). Which of the following would cause the change depicted in Figure 19.3? Note that the figure depicts the quantity of euros traded. Question 5 Australia ________ concerned with being a net borrower if Australia is using all of the borrowed funds to ________. Question 6 Which of the following describes the national security argument for protectionism? Question 7 In economics, the term 'dumping' refers to: Question 8 GATT was: Question 9 The idea of twin deficits refers to the possibility that a large federal budget deficit will lead to a: Question 10 How will the exchange rate (foreign currency per dollar) respond to an increase in the preference for imported goods by Australians in the long run, ceteris paribus? Question 1 Contractionary fiscal policy lowers the budget deficit. In an open economy this may ________ the foreign exchange value of the dollar, and ________ net exports. Question 2 Australia currently uses which of the following exchange rate systems?Question 3 Suppose that average productivity of Chinese firms increases more rapidly than the average productivity of Australian firms, then: Question 4 In an open economy, contractionary monetary policy will have a secondary effect on GDP because: Question 6 A federal budget deficit may ________ exchange rates (foreign currency per domestic currency), and ________ the balance of trade for goods and services. Question 8 Refer to Figure 18.3 for the following question(s). Figure 18.3. Since 1953, the USA has imposed a quota to limit imports of peanuts into the country. This figure illustrates the impact of the quota. (One pound = approximately 0.45 kilograms). Refer to Figure 18.3. What is the value of domestic producer surplus after the imposition of a quota? Question 9 Suppose that the European Union experiences a recession and this causes a decline in income in the European Union relative to Australia. Because of this, the dollar will, ceteris paribus: Answers: appreciate, and Australian net exports will rise. depreciate, and Australian net exports will fall. appreciate, and Australian net exports will fall. depreciate, and Australian net exports will rise. Question 10 If the Australian government sells a bond to the Bank of China, how is this recorded in Australia's balance of payments? Question 2 Refer to Figure 18.1 for the following question(s). Question 3 One advantage of adopting a fixed exchange rate is that: Question 4 In an open economy, expansionary monetary policy will have the added effect of causing the: Question 5 Refer to Figure 19.1 for the following question(s). Consider the market for dollars against the British pound shown in Figure 19.1. From this graph, we can conclude that the dollar price of a British pound has ________ to ________ dollars per pound. Question 6 The large current account deficit in Australia means that: Question 7 Suppose that Argentina and Chile both produce copper and wheat, and that Argentina has an absolute advantage in the production of both goods. If Chile has a lower opportunity cost for producing copper, then: Question 8 Among the reasons some groups oppose globalisation is: Question 9 Your friend argues that Australian producers cannot compete with some foreign producers because wages are lower in some foreign countries than in Australia. Your friend is: Question 2 If CAB = current account balance, I = private sector investment, S = national saving and NX = net exports, then: Question 3 If S = national saving, I = private investment and NFI = net foreign investments, then: Question 4 Assume the exchange rate between the dollar and yen is ¥80= $1. Suppose that the exchange rate changes to ¥75 = $1. As a result of the change, there will be: Question 5 Refer to Figure 18.3 for the following question(s). Figure 18.3. Since 1953, the USA has imposed a quota to limit imports of peanuts into the country. This figure illustrates the impact of the quota. (One pound = approximately 0.45 kilograms). Question 7 Refer to Figure 18.1 for the following question(s). Question 10 Refer to Figure 19.3 for the following question(s). Which of the following would cause the change depicted in Figure 19.3? Note that the figure depicts the quantity of euros traded. Question 1 The protectionist argument that economists consider the most persuasive is Question 2 A federal budget deficit can lead to a(n): Question 3 Refer to Figure 18.3 for the following question(s). Figure 18.3. Since 1953, the USA has imposed a quota to limit imports of peanuts into the country. This figure illustrates the impact of the quota. (One pound = approximately 0.45 kilograms). Question 7 Which of the following is not a potential benefit from trade? Question 1 If prices rise faster in the United States of America (USA) than in Australia, and USA goods become relatively more expensive: Question 3 The United States of America implements a quota on imported cotton. This will ________ the supply of United States dollars relative to the currencies of foreign cotton producers and lead to a(n) ________ of United States dollars relative to these foreign currencies. Question 6 Suppose that interest rates increase in Japan and at the same time the Japanese economy is experiencing a recession. What will happen to the value of the dollar relative to the yen? Question 7 Refer to Figure 19.1 for the following question(s). Refer to Figure 19.1. Which of the following events cause the shifts in the supply and demand curves in the market for dollars against the British pound shown in the graph above? Question 8 Domestic producers require time to gain experience and lower their unit costs; this will allow these producers to compete successfully in international markets. This statement describes the ________ argument for protectionism. Question 3 All but one of the following statements is used to justify protectionism. Which statement is not used to justify protectionism? Question 5 When countries aim to keep the value of their currency within a range against another currency, their exchange rate system is referred to as: Question 8 If nation A can produce 20 power plants and 16 ships, while nation B can produce 18 power plants and 12 ships, then nation B's opportunity cost to produce a power plant is Question 2 It is difficult to determine if foreign companies are selling their products for prices below their costs of production because: Question 4 Refer to Figure 18.1 for the following question(s). Question 6 Refer to Figure 18.2 for the following question(s). Figure 18.2 The effect if the US government imposes a $0.75 per pound tariff on coffee imports into the USA. (One pound = approximately 0.45 kilograms). Refer to Figure 18.2. The loss in domestic consumer surplus as a result of the tariff is equal to: Question 9 If net primary income and net secondary income are $0, and a country's purchases of foreign goods and services are $25 billion while its sales of goods and services overseas are $26 billion, it has a: Question 8 Economists may support barriers to trade: [Show More]

Last updated: 1 year ago

Preview 1 out of 15 pages