quiz 3

Question 1

Economics is based on the questions of how people deal with:

Answer 1

scarcity

Question 2

Markets require one on one negotiation. That is, the grocery store or Wal-Mart does not count as a market.

Answer 2

False

Question 3

Adam Smith argued the markets require ______ if they are to work correctly:

Answer 3

competition

Question 4

If the demand for a good rises, both the equilibrium price and quantity should rise.

Answer 4

True

Question 5

Adam Smith believed that:

Answer 5

markets usually give the right answer, but sometimes they fail

Question 6

The purchase of clothes made in Viet Nam would appear in the US balance of payments in the _____ account.

Answer 6

current

Question 7

There are billions of dollars of error every year and for almost every country in the calculation of the balance of payments.

Answer 7

True

Question 8

From World War II to the 1970s, the world used:

Answer 8

fixed exchange rates

Question 9

China keeps the dollar from ______ against the Yuan.

Answer 9

falling

Question 10

China does what it does in question 9 to:

Answer 10

keep prices of Chinese goods low in the US