[{"id":214919,"question":"If goods are exported for less than society's marginal production cost and the marginal benefit to domestic consumers, it is likely that they benefit from.","choices":[{"text":"An import subsidy","value":"A"},{"text":"A quota","value":"B"},{"text":"Comparative advantage","value":"C"},{"text":"An export subsidy","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214918,"question":"An optimal tariff is one which reduces imports to the level at which ___ equals","choices":[{"text":"imports , exports","value":"A"},{"text":"The balance of trade, zero","value":"B"},{"text":"The demand for currency, the supply of currency","value":"C"},{"text":"Social marginal cost social marginal benefit","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214917,"question":"A tariff causes domestic firms to __________ and consumers to","choices":[{"text":"Overproduced, under consume","value":"A"},{"text":"overproduce , overconsume","value":"B"},{"text":"Underproduce, under 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endowments","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214913,"question":"International difference in opportunity costs lead to countries acquiring.","choices":[{"text":"Comparative advantage","value":"A"},{"text":"High exchange rates","value":"B"},{"text":"Trade exchange rates","value":"C"},{"text":"Trade barriers","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":214912,"question":"International specialization takes place because of.","choices":[{"text":"Differences in technology","value":"A"},{"text":"Differences in factor endowments","value":"B"},{"text":"Scale economies","value":"C"},{"text":"All of the above","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214911,"question":"Real business cycle theorists argue that ___________ can explain short and long term fluctuations in output.","choices":[{"text":"Imperfect labour markets","value":"A"},{"text":"Rational expectations","value":"B"},{"text":"Intertemporal decisions of households firms and government.","value":"C"},{"text":"Sun spot cycles","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":214910,"question":"The business cycle is not transmitted from one country to another through.","choices":[{"text":"Private sector imports and exports","value":"A"},{"text":"Economic policy","value":"B"},{"text":"The duration of compulsory education","value":"C"},{"text":"Labour supply changes","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":214909,"question":"Real business cycle theories suggest that _____ to correct departures from the desired growth path.","choices":[{"text":"There is a role of fiscal policy","value":"A"},{"text":"There is a role for monetary policy","value":"B"},{"text":"There is a role for supply side policies","value":"C"},{"text":"There is no case for stabilizing output over the business cycle.","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214908,"question":"Real business cycle are cycles in","choices":[{"text":"Potential 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expected future profits.","value":"A"},{"text":"Investment, interest rates.","value":"B"},{"text":"Investment expected future profits.","value":"C"},{"text":"Stock building, interest rates.","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":214904,"question":"The theory that explains business cycles by the dynamic interaction of consumption and investment demand is the.","choices":[{"text":"Sun spect theory","value":"A"},{"text":"Multiplier accelerator model","value":"B"},{"text":"Solow theory","value":"C"},{"text":"New classical theory","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":214903,"question":"All of the following are parts of the business cycle except.","choices":[{"text":"Boom","value":"A"},{"text":"slump","value":"B"},{"text":"Recovery","value":"C"},{"text":"Acceleration","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214902,"question":"The business cycle describes fluctuations in output around the.","choices":[{"text":"Trend path of 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progress","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214899,"question":"In the neoclassical theory of growth a higher saving rate leads to.","choices":[{"text":"A higher growth rate","value":"A"},{"text":"A fluctuating growth rate","value":"B"},{"text":"A lower growth rate","value":"C"},{"text":"No change in the growth rate","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214898,"question":"The neoclassical theory of growth identities the steady state rate of growth as the _________ just sufficient to keep _______ constant while labour grows.","choices":[{"text":"Saving investment","value":"A"},{"text":"Capital per person productivity","value":"B"},{"text":"Labour growth , output","value":"C"},{"text":"Investment capital per person","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214897,"question":"Potential output can be increased by _________ or by_________","choices":[{"text":"Increasing the use of labour, increasing the use of land","value":"A"},{"text":"Increasing the use of capital, increasing the use of labour","value":"B"},{"text":"Increasing the use of land, increasing the use of capital","value":"C"},{"text":"Increasing the use of all inputs technical advances","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214896,"question":"GDP per head may be an imperfect measure of economic welfare because it excludes.","choices":[{"text":"The value of leisure","value":"A"},{"text":"Externalities","value":"B"},{"text":"Untraded goods","value":"C"},{"text":"All of the above","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214895,"question":"In the EMU a country's competitiveness can change because of.","choices":[{"text":"Interest rate adjustment","value":"A"},{"text":"Central bank intervention i the forex","value":"B"},{"text":"Domestic wage and price adjustment","value":"C"},{"text":"Devaluations","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":214894,"question":"the Maastricht criteria for entry to the EMU are that applicants should have","choices":[{"text":"Low inflation","value":"A"},{"text":"Low interest rates","value":"B"},{"text":"Stable nominal exchange rate","value":"C"},{"text":"All of the above","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214893,"question":"All of the following are benefits of the single market except.","choices":[{"text":"It allows countries to exploit their comparative advantage, more fully","value":"A"},{"text":"Firms could more readily exploit economies of scale","value":"B"},{"text":"It intensified competition","value":"C"},{"text":"It is easier book holidays in member countries.","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214892,"question":"The single European Act committed_ governments to a ___ in 1992","choices":[{"text":"European union, single market","value":"A"},{"text":"Western European, single currency area","value":"B"},{"text":"European union, single currency area","value":"C"},{"text":"Western European, single market","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":214891,"question":"In the ERM, each country fixed ___ against each other ERM participant collectively the group._____ against the rest of the world.","choices":[{"text":"A nominal exchange rate, floated","value":"A"},{"text":"A real exchange rate, pegged","value":"B"},{"text":"a purchasing power parity, pegged","value":"C"},{"text":"a real exchange rate, floated","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":214890,"question":"Fiscal policy is weak under floating exchange rates as fiscal expansion.","choices":[{"text":"Crowds out imports","value":"A"},{"text":"Crowds out public consumption","value":"B"},{"text":"Crowds out exports","value":"C"},{"text":"Reduces the budget deficit","value":"D"},{"value":"E"}],"correctAnswer":3}]