Deck 14: Macroeconomics and Us Economic Hegemony

Question 1

The market price of a commodity is shaped mostly by:

A) land and capital
B) labor and entrepreneurship
C) supply and demand
D) micro and macro levels of analysis
E) free trade and protectionism

Answer 1

supply and demand

Question 2

The point at which the supply curve and the demand curve intersect is referred to as the equilibrium price.

Answer 2

True

Question 3

Economics is the most _______of the social sciences.

A) humanistic
B) heuristic
C) quantitative
D) qualitative
E) subjective

Answer 3

quantitative

Question 4

Scarcity is the central problem of economic life because human desires for goods and services seem infinite, but society is limited by finite human and non-human resources.

Question 5

Which period proved most fortuitous for the economic theories of John Maynard Keynes?

A) World War I
B) the Great Depression
C) World War II
D) the Cold War
E) the post-Cold War

Question 6

Which form of distortion of the forces of supply and demand does the De Beers case study best illustrate?

A) monopolization
B) protectionism
C) Fordism
D) hyperfactualism
E) socialism

Question 7

Which country comes closest to meeting the criteria for a global economic hegemon over the last fifty years?

A) Soviet Union
B) China
C) United Kingdom
D) United States
E) Japan

Question 8

Importing goods whose value exceeds the goods a country exports results in a:

A) trade deficit
B) trade surplus
C) budget deficit
D) budget surplus
E) none of the above

Question 9

What are the three most useful levels of analysis in the discipline of economics?

A) primary, secondary, tertiary
B) land, labor, capital
C) micro, macro, mega
D) feudalism, mercantilism, capitalism
E) classical, neo-classical, modern

Question 10

Which countries represent the best examples of individualistic capitalism?

A) Japan and Germany
B) Germany and France
C) Japan and Netherlands
D) Netherlands and Taiwan
E) United States and United Kingdom

Question 11

Fordism was based on which principle of economic theory?

A) supply and demand
B) economies of scale
C) protectionism
D) terms-of-trade
E) none of the above

Question 12

Which factors of production consist of human resources?

A) land and capital
B) labor and entrepreneurship
C) supply and demand
D) micro and macro levels of analysis
E) free trade and protectionism

Question 13

Fiscal policy has to do mostly with:

A) the flow of money and credit
B) the flow of international investment
C) taxing and spending revenues
D) supply and demand curves
E) Fordism and downsizing

Question 14

Which two concepts are inherently incompatible?

A) supply and demand
B) protectionism and free trade
C) supply and equilibrium price
D) protectionism and commodity demand
E) commodity demand and free trade

Question 15

Intellectual historian Dorothy Ross considers the three pivotal disciplines central to the Americanization of the social sciences 100 years ago to have been:

A) sociology, anthropology, psychology
B) economics, geography, political science
C) sociology, psychology, economics
D) geography, political science, anthropology
E) economics, political science, sociology

Question 16

Which type of economy is properly allied with its main form of production?

A) primary - materials extracted from the earth
B) secondary - manufactured goods
C) tertiary - service sector
D) all of the above
E) none of the above

Question 17

Which economic system gained control of Europe with the advent of the Middle Ages?

A) capitalism
B) socialism
C) feudalism
D) mercantilism
E) entrepreneurship

Question 18

Large corporations dominate the economic landscape in the United States more than in France or in Canada.

Question 19

With which country does the United States have its largest, most balanced, and most amicable trading relationship?

A) Japan
B) China
C) Russia
D) Mexico
E) Canada

Question 20

When we speak of production, distribution, and consumption as societal responses to the universal problem of scarcity, what is it that gets produced, distributed, and consumed?

A) goods and services
B) land and capital
C) labor and entrepreneurship
D) institutions and processes
E) supply and demand

Question 21

Monetary policy involves the use of taxing and spending revenues for political purposes.

Question 22

Of the six major sectors of the U.S. economy, the manufacturing sector is poised to succeed in the future, but the finance sector does not look as promising.

Question 23

Consensus exists among international economists that protectionism is never warranted under any circumstances.

Question 24

Feudalism relied principally upon extensive trade to fill the coffers of the nascent European state system.

Question 25

The typical Keynesian solution to the problem of inflation is to increase governmental taxes and to cut governmental spending.

Question 26

Karl Marx believed that the class struggle during the capitalist stage of history would result in violent revolution when the downtrodden proletariat would rise up against the bourgeoisie.

Question 27

As means of subsistence, traditional economies rely on either hunting and gathering, horticulture, or pastoral activities.

Question 28

The term doi moi refers to economic reforms currently underway in Vietnam.

Question 29

The term downsizing described workforce reductions undertaken by many corporations in the 1990s to reduce their expenditures in hopes of competing in the global economy.

Question 30

The measures of GNP, GDP, and HDI involve the same variables but compute them differently.

Question 31

Money has served as the medium lubricating market exchanges ever since the very first ancient civilizations more than five thousand years ago.

Question 32

Successful completion of the Uruguay Round of the GATT negotiations resulted in the creation of the World Trade Organization WTO).

Question 33

Mixed-market economies characterized the era known as the Middle Ages.

Question 34

A government-directed economy is called a traditional economy.

Question 35

The Industrial revolution was supported by the economic system of mercantilism, and this economic system dominated Europe in the eighteenth century.

Question 36

Both OPEC and the De Beers corporation are international cartels.

Question 37

Supply-side economic theory is very compatible with the traditional principles of Keynesian economics.