Econ U4 Post Test Review

1. Name a long-term impact of tariffs on domestic consumers.

• Domestic INCREASE of imported goods, prices of item RISES for consumers

• Domestic DECREASE of imported goods, prices of item RISES for consumers

• Domestic INCREASE of imported goods, prices of item SHRINKS for consumers

• Domestic DECREASE of imported goods, prices of item SHRINKS for consumers

1. If the Federal Government spends tax dollars on Infrastructure (roads and bridges), what type of economic policy is being practiced?

• Comparative Advantage

• Business investment

• CPI

• Expansionary fiscal policy

1. In calculating GDP, what category does a company purchasing a new warehouse Fall under?

• Business investment

• Market Basket

• Structural unemployment

• CPI

1. If CPI has INCREASED for 3 consecutive months, what can we assume has happened to the price of goods?

• Decreased

• Increased

• Stays the same

• yes

1. The value of one country’s currency as compared to the currency of another country?

• Exchange Rate

• Embargo

• Tariff

• Quotas

If a country can produce a good with a lower opportunity cost, they have _______?

• Market Basket

• World Trade

• Country Advantage

• Comparative advantage

1. How is the unemployment rate calculated?

• number of people in the workforce divided by the total number of people with jobs

• number of people in the workforce not divided by the total number of people without jobs

• number of people in the workforce divided by the total number of people without jobs

• number of people in the workforce not divided by the total number of people with jobs

1. What statistic is used to measure Inflation?

• GED

• CPI

• GPD

• ASAP

1. If a country is in a recession, what should the government do if they use fiscal policy?

• increase spending increase taxes

• decrease spending decrease taxes

• increase spending decrease taxes

• decrease spending increase taxes

1. What type of unemployment occurs when people lose their jobs because of technology improvements? 

• Structural Unemployment

• Structural Employment

• Market Basket

• Cyclical Unemployment