Assume that the fixed exchange rate system of 100 pesos = 1 dollar is above the equilibrium exchange rate of 90 pesos= 1 dollar in a flexible exchange rate system. Then the dollar would be
a. undervalued and the peso would be overvalued.
b. overvalued and the peso would be undervalued.
c. revalued.
d. depreciated and the peso would be appreciated.
Question 2What did the Proclamation of 1763 and the Quebec Act of 1774 represent?
(a) A continuation of earlier British land policies, but these were no longer workable or acceptable
to the colonists
(b) A temporary change in British land policies, but the change was not workable or acceptable
to the colonists
(c) A permanent change of earlier British land policies that was not acceptable to the colonists, who wanted a continuation of the old policies
(d) The Proclamation was more of a temporary change, but the Quebec Act represented a permanent change of earlier policy, neither of which was acceptable to the colonists
Question 3Even in 1928, non-bank sources provided more funds for brokers' loans in the stock market than did the nation's banks.
Indicate whether the statement is true or false
Question 4Laborers of which sector work in the tertiary or service sector?
(a) Teachers, doctors, lawyers, nanotechnologists, musicians and athletes
(b) Farmers, fisher people and foresters
(c) Manufacturers and processors of raw materials
(d) All of the above
Question 5The U.S. dollar exchange rate describes the
a. the deficit/surplus situation in the balance of payments.
b. the price of a foreign currency in terms of dollars.
c. the deficit/surplus situation in the merchandise trade balance.
d. future changes in foreign balance of payments.
e. none of the above.
Question 6The stock market collapse of 1929 might have been averted had large corporations maintained their participation in the market for securities loans in 19251929.
Indicate whether the statement is true or false
Question 7Differences in what can explain the wage gap between U.S.-born and foreign-born workers?
(a) Culture
(b) Schooling
(c) Urbanization
(d) All of the above
Question 8All railroads were private enterprises with no government influence.
Indicate whether the statement is true or false
Question 9The Laffer curve specifies
a. a negative relationship between marginal tax rates and tax revenue.
b. a positive relationship between marginal tax rates and tax revenue.
c. no relationship between marginal tax rates and tax revenue.
d. none of the above.
Question 10In the modern Keynesian model, velocity
a. varies positively with the level of the interest rate but not with income.
b. varies positively with the level of the interest rate and with income.
c. is constant.
d. varies in the short run but is constant in the long run.
e. none of the above
Question 11During World War I (191418), the government did not have to rely on which one of the following reallocation devices?
(a) Inflation
(b) Taxes
(c) Borrowing
(d) Rationing
Question 12After the American Revolution concluded, what did the English do?
(a) They withdrew all investments in colonial America.
(b) They continued investing in colonial America.
(c) They discouraged individuals in other countries from investing in colonial America.
(d) They did none of the above.
Question 13Research indicates that which one of the following factors likely gave rise to increased obesity in the U.S.?
(a) Advancements in modern cooking technology
(b) Increased consumption of restaurant and fatty foods
(c) A shift from exercise in leisure to labor
(d) All of the above
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