Unit 2 EPF

What happens when The Fed raises Reserve Requirement?

• Less funds for banks to give out so high interest rates

• More funds for banks to give out so high interest rates

• Less funds for banks to give out so low interest rates

• none of these are right

When federal government jobs increase _____________

• taxes decrease
• taxes increase
• nothing changes

What happens during a recession?

• GDP decrease

• GDP increase

• Unemployment raises

• Unemployment decreases

the lowest point when the economy stops falling is __________ ​

• peak
• point
• trough
• valley

What is a tariff?

• tax on imports

• tax on exports

• stopping trade with other countries

• reason for outsourcing of jobs

What is the government trying to end when it buy bonds and bill back from the smaller banks?

• increase money supply

• lower interest rates

• decrease money supply

• increase interest rates

Many people did not like NAFTA due to _________________

Country 1: Makes 6000 computers in an hour and 200 cars in an hour

Country 2 Makes 1000 computers in an hour and 3000 cars in an hour

What should country 1 do with comparative advantages?

• specialize in computers and sell them to country 2

• specialize in cars and sell them to country 2

• keep producing like they are

• Put an embargo on Country 2's computer production

All resources are scarce. What does that lead too?

• Unlimited resources for everyone
• No need for prioritizing resources
• Equal distribution of resources for all
• Countries having to trade to get products they need and want

Free trade organizations lead to specializaiton and _____ prices