Briefly describe some of the current policies the United States has in place to limit both fairly and unfairly traded goods.
What will be an ideal response?
Question 2 - A country cannot produce a mix of products with a higher value than where
A) the isovalue line is tangent to the production possibility frontier.
B) the isovalue line intersects the production possibility frontier.
C) the isovalue line is above the production possibility frontier.
D) the isovalue line is below the production possibility frontier.
E) the isovalue line is tangent with the indifference curve.
Question 3 - All of the following are symptoms of definite and indefinite macroeconomic imbalances EXCEPT
A) large budget deficits.
B) an overvalued currency.
C) a current account deficit.
D) the discovery of emerging markets by financial investors who want to diversify their portfolios.
E) inflationary pressures.
Question 4 - The more difficult the goal, the more likely military force is going to be needed to back up economic sanctions.
Indicate whether the statement is true or false
Question 5 - Relative price changes indicate
A) all prices move together.
B) all exchange rates move together.
C) some prices increase faster than others.
D) exchange rates appreciate faster than prices change.
Question 6 - Describe the criticisms about decision making at the IMF and the World Bank.
Which types of policies are thought to reflect bias? What types of costs are not considered? What is the fundamental question critics raise about the operations of the international governmental economic institutions?
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