SOPHIA ECON102 Unit 4 Challenge 1 Latest 2022 May

ECON102 Macroeconomics

Unit 4 Challenge 1

Using the graph, which of the following statements is true?

a.)The level of output cannot be sustained indefinitely.

b.)The economy is producing the maximum amount possible given current resources.

c.)The unemployment rates are falling.

d.)The economy is producing at a real GDP greater than the LRAS.

Government expenditures create demand for goods and services.

This is known as __________ and will cause AD to shift to the __________.

a.)contractionary monetary policy; left

b.)contractionary fiscal policy; right

c.)expansionary monetary policy; left

d.)expansionary fiscal policy; right

During the 1970s, some economists argued that the cause of the woes of the economy were due to __________.

a.)brain drain due to ineffective education and training

b.)low taxes and a government surplus that should have been spent on social programs

c.)increase in unemployment, as women entered the labor force

d.)supply shock due to issues with the supply of oil

Which of the following describes what will happen to international trade when the dollar is weak?

a.)A negative effect on GDP in the U.S.

b.)An increase in the U.S. standard of living

c.)A decrease in net exports for the U.S.

d.)A decrease in the amount of goods Americans can buy abroad

China has a __________ with the United States, meaning that it exports more than it imports.

a.)trader barrier

b.)trade deficit

c.)trade surplus

d.)floating rate

Which of the following is true regarding absolute advantage, given the information above?

a.)Country A has an absolute advantage in producing both clothing and computers.

b.)Country B has an absolute advantage in producing both clothing and computers.

c.)Country A has an absolute advantage in producing computers.

d.)Country A has an absolute advantage in producing clothing.

Which of the following represents the advantages of using trade barriers?

a.)They are not involved in a political process so the time to implement them is minimal.

b.)They are most useful when the economy is at full employment.

c.)They can be useful during economic downturns.

d.)They create greater competition among businesses.

Which statement is true regarding sustainable economic growth?

a.)It considers the impact over time due to natural resource depletion.

b.)It does not factor in the cost of production based waste.

c.)It is not affected by developments in technology.

d.)It emphasizes the importance of current consumption over future consumption.

Which of the following statements best describes the EPA economic justice initiative?

a.)This consists of a panel of leading economists who conduct research on climate change policy.

b.)This organization has taken a more vocal position in recent years that carbon emissions must be reduced.

c.)This is a form of regulation intended to reduce the negative effect of externalities.

d.)This is part of the United Nations Framework Convention on Climate Change.

Which of the following statements is true regarding corporate social responsibility (CSR)?

a.)CSR is monitored by the United Nations.

b.)CSR Is managed by state and federal governments.

c.)CSR refers to practices that firms take to voluntarily engage in actions such as philanthropy.

d.)Corporate governance includes volunteer time and corporate employee matching contributions.