If the dollar appreciates, it can be said that:
a. foreigners respect the United States more.
b. other currencies depreciate.
c. it increases in value within the United States.
d. other currencies also appreciate.
Question 2The total labor force consists of:
a. the entire population.
b. the population over the age of sixteen.
c. the number of officially employed persons.
d. the number of officially employed persons plus the number of officially unemployed persons.
Question 3When the domestic currency depreciates, domestic goods become more expensive to foreign buyers.
a. True
b. False
Indicate whether the statement is true or false
Question 4Which of the following is true?
a. In equilibrium, with only two countries, the excess demand for loanable funds in one country will equal the excess supply of loanable funds in the other.
b. Countries with net capital inflows tend to be few or no capital outflows.
c. Capital flows will tend to decrease real interest rates in countries with a capital inflow.
d. Both a. and c. are correct.
Question 5The unemployment rate is defined as:
a. unemployed workers plus discouraged workers, divided by the total population over the age of sixteen.
b. part-time workers plus full-time workers, divided by the total population over the age of sixteen.
c. the percentage of the labor force that is unemployed.
d. the percentage of the population over the age of sixteen that is unemployed.
Question 6When a U.S. importer needs 20,000 to settle an invoice for 228,000 Uruguayan pesos, the price of 1 dollar is 11.4 Uruguayan pesos.
a. True
b. False
Indicate whether the statement is true or false
Question 7Which of the following is true?
a. When real interest rates are lower in country A than country B there will tend to be a capital flow from country B to country A.
b. Capital flows tend to move real interest rates in different countries toward equality.
c. Capital flows will tend to decrease real interest rates in countries with a capital outflow.
d. Both b. and c. are correct.
Question 8The unemployment rate measures:
a. unemployed workers as a percentage of the population.
b. unemployed workers as a percentage of the population over the age of sixteen.
c. unemployed workers as a percentage of the labor force.
d. the number of people unemployed divided by the number of people employed.
Question 9If the euro per dollar exchange rate changes from 1 = 0.8 euros to 1 = 0.7 euros, it implies that the euro has depreciated against the dollar.
a. True
b. False
Indicate whether the statement is true or false
Question 10Which of the following is true?
a. When real interest rates are higher in country A than country B there will tend to be a capital flow from country B to country A.
b. When real interest rates are higher in country A than country B there will tend to be a capital flow from country A to country B.
c. Capital flows will tend to increase real interest rates in countries with a capital inflow.
d. Both b. and c. are correct.
Question 11The unemployment rate is the number of people classified as unemployed as a percentage of:
a. the entire population.
b. the population over the age of sixteen.
c. the labor force.
d. the number of people over the age of sixteen who are employed.
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