Liberty university econ 214 exam 4

 Liberty University ECON 214 Exam 4·         Question 12 out of 2 pointsThe two types of monetary policy are:·         Question 22 out of 2 pointsAn agreement by one country to limit the volume of exports to another country is known as a(n):·         Question 32 out of 2 pointsThe following table shows the number of U.S. dollars required to buy one Mexican peso and the number of U.S. dollars required to buy one Japanese yen between January 1, 2013, and April 1, 2013. Use this table to answer the questions that follow:On March 1, 2013, the price of a jar of pickles was 135 Mexican pesos at a supermarket in Juarez, Mexico. Based on the exchange rates quoted in the table, the price of the jar of pickles was approximately _____________ U.S. dollars.·         Question 42 out of 2 pointsAccording to the theory of monetary neutrality, in the long run:·         Question 52 out of 2 pointsWhen a foreign supplier sells a good below the price it charges in its home country, this is called:·         Question 62 out of 2 pointsThe following table shows the number of U.S. dollars required to buy one British pound between September 3, 2012, and April 1, 2013. Use this table to answer the questions that follow:On November 1, 2012, the price of a skateboard at JJ’s Beach Shop was 120 U.S. dollars in La Jolla, California. On April 1, 2013, the price of a skateboard was 130 U.S. dollars. Using the exchange rates in the table, between November 1, 2012, and April 1, 2013, the price of a skateboard at JJ’s Beach Shop increased by approximately ___________ in terms of U.S. dollars and ____________ in terms of British pounds. (Round the British pound price two decimal points and the percentage changes to the first decimal point.)·         Question 70 out of 2 pointsCurrency ___________ occurs when a currency increases in value relative to other currencies.·         Question 82 out of 2 pointsWhich of the following explains why resource prices are often the slowest prices to adjust?·         Question 92 out of 2 pointsOne argument for trade restriction focuses on new industries. It can be summarized in the following manner:·         Question 102 out of 2 pointsUse the following scenario to answer the questions that follow:Amy can produce either 5,000 pounds of cheese or 20 houses per year. Jim can produce either 5,000 pounds of cheese or 10 houses per year.Amy’s opportunity cost of producing one pound of cheese is _____________ house(s).·         Question 112 out of 2 pointsCitizens can consume the largest quantities of goods and services in which of the following situations?·         Question 122 out of 2 pointsThe following table shows the number of U.S. dollars required to buy one euro between September 3, 2012, and April 1, 2013. Use this table to answer the questions that follow:Between February 1, 2013, and April 1, 2013, the U.S. dollar ___________ against the euro, and the euro ____________ against the U.S. dollar.·         Question 132 out of 2 pointsIf the Bank of Japan (the Japanese central bank) were to take steps to devalue the yen in foreign currency markets, ____________, which would cause Japanese real gross domestic product (GDP) to increase in the short run.·         Question 142 out of 2 pointsAs the prices of goods and services decrease, the value of money:·         Question 152 out of 2 pointsThe arrows in Figures A–D represent possible movements of the exchange rate (euros per U.S. dollar) and the quantity of U.S. dollars buyers are willing and able to buy. Use these figures to answer the questions that follow:A deprecation of the euro against the U.S. dollar is represented by Figure ___________, and a depreciation of the U.S. dollar against the euro is represented by Figure _____________.·         Question 162 out of 2 pointsThe Federal Reserve’s response to the Great Recession was an attempt to:·         Question 172 out of 2 points_______________________ would be hurt by unexpected inflation.·         Question 182 out of 2 pointsUse the following scenario to answer the questions that follow:RayRay and Andrew produce baseballs and golf balls. RayRay can produce six baseballs per hour or four golf balls per hour. Andrew can produce three baseballs per hour or one golf ball per hour.Based on the scenario, which of the following is true?·         Question 192 out of 2 pointsThe trade-restriction view assumes that free trade is __________ and should be _____________.·         Question 202 out of 2 pointsOne of the reasons given for the imposition of a protectionist policy such as a tariff is to:·         Question 212 out of 2 pointsA cost-of-living adjustment clause:·         Question 222 out of 2 pointsThe combination of high unemployment rates and high inflation is called:·         Question 232 out of 2 pointsThe euro is an unusual currency because:·         Question 242 out of 2 pointsIf inflation is expected:·         Question 250 out of 2 pointsUse the following scenario to answer the questions that follow:Karl and Pete produce cars and trucks. Karl can produce 10 cars per hour or 5 trucks per hour. Pete can produce 12 cars per hour or 4 trucks per hour.Based on the scenario, which of the following is true?·         Question 262 out of 2 pointsAssuming the theory of purchasing power parity holds, if the exchange rate between the United States and Japan is $0.011 per yen (¥), then how much does a $400 Microsoft Xbox cost in Japanese yen?·         Question 272 out of 2 pointsAdaptive expectations theory:·         Question 282 out of 2 pointsAssuming the theory of purchasing power parity holds, if the exchange rate between the United States and Europe is $1.33 per euro, then how much does a €35 bottle of French champagne cost in U.S. dollars?·         Question 292 out of 2 pointsWhen inflation is expected, the real effect on the economy is:·         Question 302 out of 2 pointsUse the following scenario to answer the questions that follow:Esther and Albert produce hamburgers and hot dogs. Esther can produce six hamburgers per hour or four hot dogs per hour. Albert can produce three hamburgers per hour or one hot dog per hour.Based on the scenario, Esther’s opportunity cost of one hamburger is:·         Question 312 out of 2 pointsThe strategic use of monetary policy to counteract macroeconomic expansions and contractions is known as:·         Question 320 out of 2 pointsAccording to adaptive expectations theory, if the last three years of inflation were 3%, 3%, and 2%, respectively, one would expect inflation the following year to be:·         Question 332 out of 2 pointsStagflation is:·         Question 342 out of 2 pointsUse the following scenario to answer the questions that follow:Esther and Albert produce hamburgers and hot dogs. Esther can produce six hamburgers per hour or four hot dogs per hour. Albert can produce three hamburgers per hour or one hot dog per hour.Based on the scenario, Albert’s opportunity cost of one hot dog is:·         Question 352 out of 2 pointsThe traditional short-run Phillips curve implies that:·         Question 360 out of 2 pointsSuppose a Chinese citizen buys a box of Nestlé Kit Kat candy bars from America and Nestlé uses the currency to purchase Chinese-manufactured televisions. How will this transaction enter into the U.S. balance of payments?·         Question 372 out of 2 points_______________________ would be hurt by unexpected inflation.·         Question 382 out of 2 pointsWhich of the following explains expansionary monetary policy in the long run?·         Question 392 out of 2 points______________ occurs when a national government or central bank intentionally adjusts its money supply to affect the exchange rate of its currency.·         Question 402 out of 2 pointsUse the following scenario to answer the questions that follow:Karl and Pete produce cars and trucks. Karl can produce 10 cars per hour or 5 trucks per hour. Pete can produce 12 cars per hour or 4 trucks per hour.Based on the scenario, which of the following is true?

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