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Flashcards in economics 825-900 Deck (75):
1

People sometimes donate their used vehicles to charity. What is one incentive for doing so?

less-developed

2

A nation with a per capita GDP of $2200 would be classified as having a (developed / developing/ less-developed) economy.

Many nations have a majority of people with very low incomes and a small number of people with very high incomes that bring the average up.

3

Why can per capita GDP be misleading?

less-developed

4

LDC stands for ______.

the profit motive

5

What is the most common economic incentive in a free market economy?

more

6

At present, fifty Euro are worth (less/more) than fifty American dollars?

more

7

At present, fifty British Pounds are worth (less/more) than fifty American dollars?

Great Britain

8

Which is the most significant country in Western Europe not to join the EU or use the Euro?

4

9

the humphrey hawkins act defines full employment as ___% unemployment

1946

10

The Employment Act of ____ gave the government the responsibility of creating and maintaining full employment

the humphrey-hawkins

11

what is another name for the full employment and balanced growth act of 1978

full employment, price stability, and the growth of economic output

12

what are the three major goals listed in the humphrey-hawkins act

FALSE

13

true or false: the federal reserve can change the prime rate directly

1913

14

the federal reserve was founded in -----.

the Federal Reserve Act of 1913

15

what piece of legislation created the Federal Reserve?

decreased

16

Between 1997 and 2000, the amount of interest paid on the federal debt (decreased/increased)

the fderal open market committee

17

which federal reserve group controls the purchase and sale of government bonds

12

18

how many members are on the federal open market committee

7 of the 12 members are the board of govenors and the other five are presidents of federal reserve district banks, with the New York district president always represented.

19

how are the members of the federal open market committee chosen

the banks that belong to the federal reserve system in that district

20

technically each federal reserve district bank is owned by

false the president of the new york district bank is always a member of the federal open market committee but not necessarily the board of governors

21

true or false the president of the new york district bank is always a member of the board of governors

open market operations the purchase and sale of government bonds

22

what is the tool the federal reserve most frequently uses to adjust the money supply

demand

23

a checking account is also known as a_____ deposit.

TRUE

24

true or false no two members of the federal reserve board of governors can be from the same federal reserve district

25

25

how many smaller branch banks are there in the federal reserve

the board of governors

26

which group heads the federal reserve

7

27

how many members are there on the board of governors of the federal reserve

governors are appointed by the president

28

how does one member become a member of the board of governors

TRUE

29

true or false the federal reserve handles check clearing

false they can choose to

30

true or false state banks cannot join the federal reserve system

false the figure commonly given is that 1/3 of us banks belong to the federal reserve system this number is probably climbing because of bank expansion and consolidation

31

true or false the majority of the nations bank belongs to the federal reserve system

discount

32

the fed can indirectly affect the prime rate by changing the .... rate, the rate that member banks charge for overnight loans

debtor

33

Young nations are usually (creditor/editor) nations.

can produce that good at a lower opportunity cost / lower relative price

34

Are trade patterns dictated by absolute or comparative advantage in producing a good if it ____

yes

35

If Country A is more efficient than country B in the production of all goods, is it possible for country A to benefit trading with country B?

surplus

36

A trade (surplus/deficit) occurs when the value of exports exceeds the value if imports.

Country B

37

With one hour of labor, country A can produce either one shirt or 4 apples. With the same amount of labor, country B can produce either two shirts or 10 apples. Which country has the comparative advantage in apples?

Country A

38

With one hour of labor, country A can produce either one shirt or 4 apples. With the same amount of labor, country B can produce either two shirts or 10 apples. Which country has the comparative advantage in shirts?

an measure of the flow of products and capital resources between a country and the rest of the world

39

What is a balance of international payments?

a good or service produced in a foreign country and purchased by domestic consumers

40

Define import.

comparative

41

A nation that produces a good with a low opportunity cost is using its absolute/comparative advantage

deficit

42

A trade (surplus/deficit) occurs when the value of imports exceeds the value of exports.

an unfavorable

43

Mercantilist writers argued that trade deficits represented (a favorable/an unfavorable) balance of trade.

credit

44

In a balance of international payments, exports are listed as (credit/debit) items.

fixed, gold

45

The Paris Conference of 1867 set most of the world on ___ exchange rate system based on the ___ standard/

TRUE

46

True or false: Mercantilists thought that trade surpluses were good because they meant gold would flow into the home country.

an unfavorable

47

Mercantilist writes argues that trade deficits represented (a favorable/an unfavorable) balance of trade.

deficits

48

A trade (surplus/deficit) occurs when the value of imports exceeds the value of exports.

the Clayton Antitrust Act

49

What law was passed in 1914 to clarify and strengthen the Sherman Act?

debtor

50

Young nations are usually (creditor/editor) nations.

can produce that good at a lower opportunity cost / lower relative price

51

Are trade patterns dictated by absolute or comparative advantage in producing a good if it ____

yes

52

If Country A is more efficient than country B in the production of all goods, is it possible for country A to benefit trading with country B?

surplus

53

A trade (surplus/deficit) occurs when the value of exports exceeds the value if imports.

Country B

54

With one hour of labor, country A can produce either one shirt or 4 apples. With the same amount of labor, country B can produce either two shirts or 10 apples. Which country has the comparative advantage in apples?

Country A

55

With one hour of labor, country A can produce either one shirt or 4 apples. With the same amount of labor, country B can produce either two shirts or 10 apples. Which country has the comparative advantage in shirts?

an measure of the flow of products and capital resources between a country and the rest of the world

56

What is a balance of international payments?

a good or service produced in a foreign country and purchased by domestic consumers

57

Define import.

comparative

58

A nation that produces a good with a low opportunity cost is using its absolute/comparative advantage

less

59

At present, fifty Canadian dollars are worth (less/more) than fifty American dollars.

deficit

60

A trade (surplus/deficit) occurs when the value of imports exceeds the value of exports.

an unfavorable

61

Mercantilist writers argued that trade deficits represented (a favorable/an unfavorable) balance of trade.

credit

62

In a balance of international payments, exports are listed as (credit/debit) items.

fixed, gold

63

The Paris Conference of 1867 set most of the world on ___ exchange rate system based on the ___ standard/

TRUE

64

True or false: Mercantilists thought that trade surpluses were good because they meant gold would flow into the home country.

an unfavorable

65

Mercantilist writes argues that trade deficits represented (a favorable/an unfavorable) balance of trade.

deficits

66

A trade (surplus/deficit) occurs when the value of imports exceeds the value of exports.

the Clayton Antitrust Act

67

What law was passed in 1914 to clarify and strengthen the Sherman Act?

debit

68

If an item causes us to use up our stock of foreign currency, it counts as a (credit/debit) in our balance of international payments.

it will increase

69

if the money supply increases and the price level remains constant, what will happen to gdp

TRUE

70

true or false: milton friedman showed that the velocity of money was fairly stable from the 1940s to 1970

monetary

71

federal reserve policies are referred to as ____ policies

quantity of output

72

what does Q stand for in the equation of exchange

gdp increases

73

if the velocity of money increases and the price level is constant, what happens to gdp

gdp remains constant

74

if the velocity of money increases and the price level increases at the same rate, waht happens to gdp

12

75

the federal advisory council has how many members

how quickly money circulates from the part to party in the economy; the higher the velocity, the more frequently money is spent