1.An increase in economic growth that cannot be accounted for by increases in ei

1.An increase in economic growth that cannot be accounted for by increases in either the labor force or the capital stock is known as an increase in: (Points : 1) inefficiency. total factor productivity. labor input. managerial productivity.2.The production function: (Points : 1) is linear. is undefined for low-income countries. slopes downward and to the right. slopes upward to the right.3.GDP per capita in the high-income countries is approximately: (Points : 1) $451. $2000. $15000. $34316.4.Which of the following refers to natural resources or the ability to produce certain agricultural products? (Points : 1) primary products cheap products import substitution total factor productivity promotion5.Which of the following is a precondition for economic growth? (Points : 1) a high level of technology a high K/L ratio the rule of law free trade6.When GDP is smaller than the sum of C I and G then: (Points : 1) a country is consuming more goods and services than it is producing. a country is consuming less goods and services than it is producing. the country is reducing its total debt to foreigners. the country will have a trade surplus.7.Real GDP is the value of final output measured in: (Points : 1) constant prices. current prices. non-inflation adjusted prices. market value prices.8.A record of all economic transactions between residents of one country with the rest of the world is called: (Points : 1) the trade balance. the balance of payments. the current account balance. the foreign exchange market.9.A current account deficit: (Points : 1) implies the country is a net borrower from the rest of the world. is always bad. implies a matching capital account deficit. is very rare for most countries.10.The value of final output measured in current prices is: (Points : 1) nominal GDP. market value GDP. real GDP. real nominal GDP.11.If an importer wants to protect a transaction against exchange rate fluctuations he/she can use the: (Points : 1) spot rate. forward rate. strike price. future spot rate.12.The principle of _____ states that if the returns on various assets do not move together identically then holding a portfolio of assets will be less risky than holding asingle asset. (Points : 1) risk diversification asset allocation stock/bond split time horizon symmetry13.Ninety-day Treasury bills commercial paper and certificates of deposit are examples of: (Points : 1) capital market instruments. money market instruments. equity instruments. government debt.14.The foreign exchange market is composed of: (Points : 1) the retail market. the inter-bank market. the futures and options markets. all of the above15.A _____ is a commitment to purchase or deliver a specified quantity of foreign currency on a designated date in the future. (Points : 1) long-term contract short-term contract NASDAQ contract futures contract16.As the dollar appreciates against the Euro: (Points : 1) U.S. imports of automobiles from Germany become more expensive. U.S. imports of automobiles from Germany become less expansive. U.S. imports are not affected. U.S. imports will fall.17.If the initial exchange rate is 120 yen per dollar and then falls to 110 yen per dollar we would say that the dollar has: (Points : 1) appreciated against the dollar. depreciated against the dollar. appreciated against the yen. depreciated against the yen.18.U.S. export industries are likely to resist: (Points : 1) an appreciation of the dollar because U.S. exports would become more expensive. a depreciation of the dollar because U.S. exports would become more expensive. an appreciation of the dollar because U.S. exports would become less expensive. a depreciation of the dollar because U.S. exports would become less expensive.19.You are planning a vacation in London next summer you would welcome: (Points : 1) an appreciation of the dollar against the pound. an appreciation of the dollar against the Euro. a depreciation of the dollar against the pound. a depreciation of the dollar against the Euro.20.As the dollar/Euro exchange rate decreases: (Points : 1) the supply of Euros increases. the supply of Euros decreases. the quantity supplied of Euros increases. the quantity supplied of Euros decreases.