final - AGEC2 217 Choose the BEST answer for each question...

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AGEC2 217 Final Multiple Choice questions RWTaylor 5/4/09 Test Form 2 Choose the BEST answer for each question. 1. So that the Instructional Data Processing Center can know the appropriate key to use to grade my test, t h e T e s t I a m t a k i n g i s : a. A secret between me and God. Having the identifying information on my answers sheets is not important to me. b. Test Form 1 and I have carefully entered all my identifying information on all answer sheets. c. Test Form 2 and I have carefully entered all my identifying information on all answer sheets. d. Test Form 4 and I have carefully entered all my identifying information on all answer sheets. e. Test Form 5 and I have carefully entered all my identifying information on all answer sheets. 2. Growth in a less developed country is most likely going to come from: a. Imported technology from developed countries. b. Increased labor productivity based on ideas generated by the country to meet their own needs. c. Grants from the World Bank. d. Substantial financial assistance from the developed world, including a mix of micro-loans along with national development projects. 3. When we have between four and eight percent unemployment: a. Monetary policy will work well, but fiscal policy will struggle to be effective. b. Fiscal policy will work well, but monetary policy will struggle to be effective. c. Neither monetary nor fiscal policy will be very effective at dealing with this problem d. Either monetary or fiscal policy or both can solve the problem easily. 4. The balanced-budget constitutional amendment that requires government spending to be equal to or less than tax receipts: a. Would be a big help in keeping us from getting into a recession which could deteriorate into another Great Depression. b. Would be a barrier to using the most effective tool we know to get out of a recession or depression. c. Would be used in conjunction with monetary policy to negate the effects of the any fiscal irregularity. d. Will solve the debt problem but would not solve the deficit problem. 5. The US dollar today will buy more Euros than it would six months ago. This is: a. Good for the US soybean exporter. b. Good for the Italian soybean importer. c. Bad for the US soybean exporter. d. Difficult to predict with certainty what the effect would be given only this information. 6. A key advantage of using the floating exchange rate system is: a. The value of the dollar goes up every time we increase our imports. b. Even if the country’s policy makers ignore trade imbalances, trade will continue, benefiting all consumers. c. That it assures us that our exports will be greater than our imports. d. The US$ will always float to the top of the world currency markets as supply and demand for imports and exports balance out over the long run on their way to equilibrium.
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7. The national debt in the US today is: a. The amount the annual spending exceeds the annual tax receipts. b.
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This note was uploaded on 02/19/2011 for the course AGEC 217 taught by Professor Deboer during the Fall '08 term at Purdue.

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final - AGEC2 217 Choose the BEST answer for each question...

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