Essay on Eco/372 Final
1) The largest source of household income in the U.S. is obtained from
B. wages and salaries
2) The market where business sell goods and services to households and the government is called the
A. goods market
3) Real gross domestic product is best defined as
C. the market value of all final goods and services produced in an economy, stated in the prices of a given year
4) Underemployment includes people
B. who are working part time, or not using all their skills at a full-time job
5) The Bureau of Economic Analysis is responsible for which of the following?
C. Calculating U.S. gross domestic product]
6) The Federal Reserve provides which of the following data?
A. Federal funds rate
7) Consider …show more content…
B. the country eventually will sell all its financial assets to foreigners
C. the domestic currency will appreciate
D. the country eventually has to produce more than it consumes in order to pay foreigners their profits
22) Considering an economy with a current trade deficit and considering only the direct effect on income, an expansionary monetary policy tends to
A. decrease the exchange rate and increase the trade deficit
B. increase the exchange rate and increase the trade deficit
C. decrease the exchange rate and decrease the trade deficit
D. increase the exchange rate and decrease the trade deficit
23) The balance of trade measures the
A. difference between the value of imports and exports
B. share of U.S. imports coming from various regions of the world
C. share of U.S. exports going to various regions of the world
D. exchange rate needed to make imports equal exports
24) When a country runs a trade deficit, it does so by:
A. borrowing from foreign countries or selling assets to them.
B. borrowing from foreign countries or buying assets from them.
C. lending to foreign countries or selling assets to them.
D. lending to foreign countries or buying assets from them.
25) Expansionary fiscal policy tends to
A. raise U.S. income, increase U.S. imports, and increase the trade deficit
B. raise U.S. income, increase U.S.