What is a pro and con of a strong dollar?

PRO: purchase more imports CON: exports go down

Why do countries trade?

Comp. advantage allows specialization and trade for the rest

Comparative advantage is when a country...

produces at a lower opportunity cost than another

an official ban on trade with a particular country.

A downside to NAFTA is

a loss of jobs to Canada/Mexico

Which person would suffer the most from inflation?

Gertrude is a retired 80-year old woman living on a fixed income.

GNP for the United States is the total value of...

goods and services produced in the world.

GDP is calculated by adding up...

consumption+investment+gov. spending, +exports - imports

the acceptable range for unemployment.

studbud

Unit 4 Test Review

21 termsStudBud Administration177 plays

Unit 4 Test Review - GDP, business cycle, trade, inflation

Flashcards21 cardsFPractice quizPHost liveL

Questions 21

Answers

1
What is a pro and con of a strong dollar?
PRO: purchase less imports CON: exports go up
PRO: purchase more imports CON: exports go down
2
GDP Per Capita is the BEST measure of standard of living.
False
True
3
Why do countries trade?
To avoid taxes
Comp. advantage allows specialization and trade for the rest
To avoid tariffs
Abs. advantage allows specialization and trade for the rest
4
The government pays the interest on an unsubsidized loan.
True
False
5
BONUS: What is the state tree of Texas?
Pecan
Maple
Elm
Cedar
6
Which country has absolute advantage in bananas?
Country B
Country A
7
Comparative advantage is when a country...
produces at a higher opportunity cost than another
produces at a lower opportunity cost than another
8
If inflation goes up your purchasing power...
stays the same.
increases,
decreases.
is not affected because it's not tied to inflation rates.
9
An embargo is...
a trade pact between countries promoting economic growth
a limit on how many imports a country can bring in
an official ban on trade with a particular country.
a tax on a particular import
10
Quitting a job to find a better job is considered...
seasonal unemployment
frictional unemployment
cyclical unemployment
phantom unemployment
11
A downside to NAFTA is
lower priced imports
higher taxes on imports
a loss of jobs to Canada/Mexico
higher priced exports
12
Which person would suffer the most from inflation?
A high school senior who saves money for all of her senior activites
Coach Hirsh invests in gold and sees the value of it rise 7%
Braxton is approaching retirement but continues to work full-time.
Gertrude is a retired 80-year old woman living on a fixed income.
13
Does a used car count in GDP?
No
Yes
14
The phase of the business cycle where the economy is coming out of a recession is known as a/an
expansion
trough
peak
depression
15
GNP for the United States is the total value of...
goods and services produced in the world.
goods and services produced within its borders.
exports - imports.
Government spending, National security, and Productivity,
16
GDP is calculated by adding up...
consumption+defense spending, +exports - imports
consumption+taxes+gov. spending, +imports - exports
consumption+investment+gov. spending, +exports - imports
consumption+taxes+gov. spending, +exports
17
Six flags closes and you lose your job. This is an example of a/an....
cyclical unemployment.
seasonal unemployment.
frictional unemployment.
discouraged worker.
18
Tariffs are taxes on
exports
imports
19
When a country's currency is weak exports will...
increase
decrease
20
4 to 6% is...
the acceptable range for unemployment.
the acceptable range for inflation.
the acceptable range for GNP.
the acceptable range for GDP.
21
In which part of the business cycle would businesses increase investment.
Expansion
Peak
Trough
Contraction

Unit 4 Test Review Flashcards | StudBud