North American Free Trade Agreement (NAFTA)

created free trade between Canada, USA, and Mexico

nominal GDP, spending by consumers + businesses + government + foreigners, money supply X velocity of money, spending in the economy

if USA adds tariffs to products

other countries will economically retaliate, other countries will add tariffs to USA products

The Reciprocal Trade Agreement Act

reduced tariffs amongst nations

tariffs and quotas are designed to

protect domestic industry, raise prices

both supply side and demand side

supply side economics advocates

less government involvement in business

studbud

economics chapters 15 and 16

27 termsStudBud Administration179 plays

Flashcards27 cardsFPractice quizPHost liveL

Questions 27

Answers

1
if the value of the dollar decreases
foreigners will buy less
imports to US will cost less
foreigners will buy more
does not impact purchases
2
global agency that reviews trade agreements
North American Free Trade Agreement
World Supreme Court
World Trade Organization
United Nations
3
supply side policies cause inflation
false
true
4
continued trade deficits in steel
harm domestic steel workers
help domestic steel workers
5
if a country has a fixed exchange rate, its currency value is based off of
CPI
economies GDP
gold reserves
peoples faith
6
North American Free Trade Agreement (NAFTA)
created free trade between North America and Asia
created free trade between North America and Europe
created free trade between Canada, USA, and Mexico
created free trade between the American continents
7
AD represents
nominal GDP
spending by consumers + businesses + government + foreigners
money supply X velocity of money
spending in the economy
8
if Congress approves a tax cut it is considered
structural fiscal policy
passive fiscal policy
active fiscal policy
discretionary fiscal policy
9
if interest rates increase
AS decreases
AS increases
AD decreases
AD increases
10
baby boomers were born between
24-42
36-63
46-64
45-54
11
For a country to have an absolute advantage, a country can
produce at a lower opportunity cost
produce more
produce less
produce at a higher opportunity cost
12
who advises the president on economic developments and strategy
congressional members of economic policy
economic equality cabinet members
council of economic advisers
council of income equality
13
Demand side policies cause inflation
true
false
14
if USA adds tariffs to products
other countries will economically retaliate
other countries will add tariffs to USA products
15
laffer curve shows the relationship between
tax rates and government spending
tax rates and tax revenue
government spending and tax revenue
government spending and tax rate
16
The Reciprocal Trade Agreement Act
increased tariffs amongst nations
was never passed by Congress
reduced tariffs amongst nations
was not approved by the World Trade Organization
17
protective trade tariffs
do not impact industry
help foreign industry
harm domestic industry
protect domestic industry
18
if investment spending decreases, the economy will
is not known
shrink
remain unchanged
grow
19
tariffs and quotas are designed to
protect domestic industry
raise prices
reduce prices
harm domestic industry
20
tax cuts are
demand side only
both supply side and demand side
neither supply side or demand side
supply side only
21
supply side economics advocates
less government involvement in business
lower interest rates
more government involvement in business
higher interest rates
22
a shortage is created when
supply is greater than demand
demand is greater than supply
the economy is stagnant
the economy is in equilibrium
23
if people from the US buy more imports, than the dollar will
increase in value
decrease in value
24
aggregate demand increases when
businesses produce more
businesses produce less
people spend more
people save more
25
increase in government spending is a
demand side policy
supply side policy
26
progressive income taxes are
structural fiscal policy
discretionary fiscal policy
active fiscal policy
passive fiscal policy
27
trade deficit =
imports > exports
exports > imports

economics chapters 15 and 16 Flashcards | StudBud

economics chapters 15 and 16

27 termsStudBud Administration179 plays

economics chapters 15 and 16

Flashcards27 cardsFPractice quizPHost liveL

Questions 27

Answers

1
if the value of the dollar decreases
foreigners will buy less
imports to US will cost less
foreigners will buy more
does not impact purchases
2
global agency that reviews trade agreements
North American Free Trade Agreement
World Supreme Court
World Trade Organization
United Nations
3
supply side policies cause inflation
false
true
4
continued trade deficits in steel
harm domestic steel workers
help domestic steel workers
5
if a country has a fixed exchange rate, its currency value is based off of
CPI
economies GDP
gold reserves
peoples faith
6
North American Free Trade Agreement (NAFTA)
created free trade between North America and Asia
created free trade between North America and Europe
created free trade between Canada, USA, and Mexico
created free trade between the American continents
7
AD represents
nominal GDP
spending by consumers + businesses + government + foreigners
money supply X velocity of money
spending in the economy
8
if Congress approves a tax cut it is considered
structural fiscal policy
passive fiscal policy
active fiscal policy
discretionary fiscal policy
9
if interest rates increase
AS decreases
AS increases
AD decreases
AD increases
10
baby boomers were born between
24-42
36-63
46-64
45-54
11
For a country to have an absolute advantage, a country can
produce at a lower opportunity cost
produce more
produce less
produce at a higher opportunity cost
12
who advises the president on economic developments and strategy
congressional members of economic policy
economic equality cabinet members
council of economic advisers
council of income equality
13
Demand side policies cause inflation
true
false
14
if USA adds tariffs to products
other countries will economically retaliate
other countries will add tariffs to USA products
15
laffer curve shows the relationship between
tax rates and government spending
tax rates and tax revenue
government spending and tax revenue
government spending and tax rate
16
The Reciprocal Trade Agreement Act
increased tariffs amongst nations
was never passed by Congress
reduced tariffs amongst nations
was not approved by the World Trade Organization
17
protective trade tariffs
do not impact industry
help foreign industry
harm domestic industry
protect domestic industry
18
if investment spending decreases, the economy will
is not known
shrink
remain unchanged
grow
19
tariffs and quotas are designed to
protect domestic industry
raise prices
reduce prices
harm domestic industry
20
tax cuts are
demand side only
both supply side and demand side
neither supply side or demand side
supply side only
21
supply side economics advocates
less government involvement in business
lower interest rates
more government involvement in business
higher interest rates
22
a shortage is created when
supply is greater than demand
demand is greater than supply
the economy is stagnant
the economy is in equilibrium
23
if people from the US buy more imports, than the dollar will
increase in value
decrease in value
24
aggregate demand increases when
businesses produce more
businesses produce less
people spend more
people save more
25
increase in government spending is a
demand side policy
supply side policy
26
progressive income taxes are
structural fiscal policy
discretionary fiscal policy
active fiscal policy
passive fiscal policy
27
trade deficit =
imports > exports
exports > imports