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Which of the following is a way in which governments can directly promote savings and​ investment?
A. Governments can limit foreign competition by imposing tariffs and quotas on trade.
B. Governments can create tax incentives for both businesses and individuals.
C  Governments can expand primary and secondary schools.
D. Governments can promote vaccinations for children and improve access to clean water

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Sonal Bahl
Sonal BahlLv10
21 Oct 2020

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Related questions

 

2. Throughout the 1990s, the amount of foreign direct investment directed at both developed and developing nations increased dramatically. This trend reflects:

  a slowdown in global economic activity.
  the increasing share of the U.S. in the total FDI stock.
  the decline in cross-border flows of foreign direct investment.
  the increasing internationalization of business corporations.
3. Globalization is criticized because it increases the power of _____.
  governments to own enterprises
  unskilled labor to form labor unions
  supranational organizations over nation-states
  nation-states to regulate markets and reduce competition
4. Which of the following is NOT a consequence of the reduction in trade barriers and restrictions on FDI since 1950?
  Firms are dispersing parts of their production process to global locations to drive down production costs and increase product quality.
  The economies of the world's nation-states are becoming more intertwined.
  Nations are becoming more independent of each other for important goods and services.
  The world has become significantly wealthier since 1950.
5.A common law system is different from a civil law system because:
  a common-law system is based on religious teachings, while a civil law system is based on cultural traditions.
  a common-law system is very rigid, while a civil law system tends to be more flexible.
  in a common law system, a judge relies on legal codes to make rulings, while in a civil law system a judge relies on his intuition and moral reasoning to make judgments.
  in a common law system, a judge has the power to interpret the law, while in a civil law system a judge has the power only to apply the law.
7. Which of the following areas of international trade is regulated by the Foreign Corrupt Practices Act?
  Making and performing commercial contracts in international trade.
  Preventing bribery and unethical acts in the conduct of international business.
  Establishing a set of safety standards to which a new product must adhere.
  Controlling the mafia activity that hinders trade in Russia, Japan, and the U.S.
8. Which of the following is a measure that is developed by the United Nations to measure the quality of life in different nations?
  Gross national income
  Human Development Index
  Purchasing power parity
  Gross domestic product
9. According to Hernando de Soto, which of the following factors is essential for the developing world to be able to reap the benefits of innovation and entrepreneurship?
  Detailed state planning
  Restricting direct investment by foreign enterprises
  Strong property rights
  Market regulation
10.Which of the following refers to the extent to which individuals can move out of the strata into which they are born?
  Caste stratification
  Class system
  Social mobility
  Individual potential
11.Which of the following is an example of ethnocentrism?
  A manager in India looks down upon his subordinates because they are from a lower caste, compared to him.
  An upper-middle-class woman talks rudely to a salesperson because she looks down upon individuals belonging to the working-class.
  An American manager criticizes the cultural practices of Saudi Arabia when he is sent there on business because it differs from his own cultural norms.
  A French business owner, who plans to expand his market to China, conducts a detailed cultural study of China to customize his marketing campaign.
13An international U.S. based company sets up a production unit in a developing country with poor environmental regulations. This contributes to:
  the noblesse obliges the situation.
  the inequity aversion.
  the global tragedy of the commons.
  the Friedman effect.
 

Question 32

  1. Tim, a citizen of the United States living in Virginia, buys a computer that was made in South Korea by a Japanese firm. This transaction would affect the GDP of the United States in which way?

    Net exports would decrease and GDP would decrease.

    Net exports would decrease and GDP would be unaffected.

    Net exports would increase and GDP would increase.

    Net exports would increase and consumption would increase.

1 points

Question 33

  1. An increase in U.S. government spending tends to

    increase U.S. interest rates and increase the U.S. capital account surplus.

    increase U.S. interest rates and decrease the U.S. capital account surplus.

    decrease U.S. interest rates and increase the U.S. capital account surplus.

    decrease U.S. interest rates and decrease the U.S. capital account surplus.

1 points

Question 34

  1. A _______ is a system in which the government intervenes extensively in the foreign exchange market to keep the exchange rate within certain bounds.

    dirty float

    floating exchange rate

    fixed exchange rate

    dollarization

1 points

Question 35

  1. Suppose the exchange rate between the euro and the dollar is E0.5 to $1. If a Big Mac costs $3 in the United States and E1.5 in Germany, then the real exchange rate is

    1:1.

    2:1.

    1:2.

    It cannot be determined from this information.

1 points

Question 36

  1. Which of the following prevent the purchasing power parity theorem from holding perfectly?

    transportation costs

    goods that cannot be shipped

    tariffs and quotas

    Each of these answers is correct.

1 points

Question 37

  1. Fiscal policy is more effective in affecting economic activity if

    many resources are unemployed.

    there is a real shock instead of an aggregate demand shock.

    the economy returns to the long-run condition almost immediately.

    there is a long implementation lag.

1 points

Question 38

  1. In a typical year, changes in government spending compared to overall spending are relatively

    small.

    large.

    unpredictable.

    well-timed.

1 points

Question 39

  1. Which statement is TRUE about the difference between monetary and fiscal policy?

    Fiscal policy can quickly adjust to changes in aggregate demand.

    Fiscal policy can have a more direct impact.

    Monetary policy is subject to many long lags.

    Monetary policy can affect the economy regardless of the actions banks take.

1 points

Question 40

  1. Fiscal policies that help an economy in a recession without additional actions by policy makers are called

    consumption smoothers.

    Ricardian equalizers.

    automatic stabilizers.

    Each of these answers is correct.

1 points

Question 41

  1. The U.S. individual income tax system can best be described as a

    regressive tax system.

    flat tax system.

    zero tax system.

    progressive tax system.

1 points

Question 42

  1. What demographic change in the United States will cause government spending to increase in the next 50 years?

    The population over 65 will grow.

    The population will be younger.

    Women will have fewer children.

    Immigration will increase.

1 points

Question 43

  1. What kind of rising costs will mostly cause U.S. government spending to skyrocket in the future?

    defense

    environmental protection

    education

    health care

1 points

Question 47

  1. The Fed could have popped the bubble of the housing boom in the 2000s by

    lending directly to homeowners.

    regulating the stock markets more.

    reducing the growth rate of the money supply.

    doing nothing.

1 points

Question 48

  1. Which of the following would be an example of running monetary policy by rules?

    A 5 percent increase in money supply automatically leads to a 2 percent increase in real GDP.

    An increase in money supply automatically leads to an increase in inflation.

    The Fed will increase money growth to different levels, depending on the severity of the recession.

    A 1 percent drop in real GDP will automatically elicit a 2 percent increase in money supply.

    Question 50

    Moral hazard occurs when

    the failure of one financial institution can bring down other institutions as well.

    financial institutions take on too much risk because they are insured.

    financial institutions become insolvent because they issued too many loans.

    there are more short-term liabilities than short-term assets.

    Which of the following is NOT a transmission mechanism?

    reductions in the money supply

    intertemporal substitution

    uncertainty

    sticky wages and prices

    Question 56

    For a given increase in government spending growth, intertemporal substitution is more widespread when

    the impact of AD growth on both inflation and real GDP growth is stronger.

    the impact of AD growth on both inflation and real GDP growth is weaker.

    the impact of AD growth on inflation is stronger and the impact of the AD growth on real GDP growth is weaker.

    the impact of AD growth on inflation is weaker and the impact of AD growth on real GDP growth is stronger.

    Stalin:

    instituted democratic reforms, leading to widespread prosperity.

    took government control of the farms in Ukraine, leading to the starvation of millions of people.

    increased the provision of public goods, which had a positive effect on lowering the unemployment rate.

    tried unsuccessfully to expand voting rights in 1924 Russia.

    1 points

    Question 60

    1 points

    Question 59

    If voters care about two issues such as taxes and war, then politicians:

    will form a stable policy on these issues.

    can pose a policy that will never lose against another policy.

    must assume that there is no median voter.

    may never converge on a stable outcome.

    1 points

    Question 58

    Policy A adversely affects 50 million people at a cost of $1 per person. But Policy A also benefits 1,000 people at $30,000 per person. Which of the following statements is true?

    Policy A will not become law because it hurts more people than it helps.

    Policy A concentrates all the costs among a small group of people and all the benefits among a large group of people.

    Policy A is likely to be supported by politicians even though it makes society worse off.

    Since Policy A negatively affects many people, and so rational ignorance will not be a problem.

    1 points

    Question 57

    Data for the United States show that the incumbent party tends to win the election if:
    I. personal disposable income is growing.
    II. the inflation rate is low.
    III. the political party has not been in power for too many continuous terms.

    I only

    I and II only

    I and III only

    I, II, and III

    1 points

    Question 53

    1 points

    Question 52

    What is the purpose of the Fed's structure?

    to give the President of the United States as many tools as possible to regulate the economy

    to make sure all states are given equal access to monetary policy decisions

    to keep the private sector out of the monetary policy making arena

    to keep the power of the Fed dispersed

    1 points

    Question 51

    An increase in money growth will cause inflation to increase in

    the short run only.

    the long run only.

    both the short run and the long run.

    neither the short run nor the long run.

Answer the following questions: (Do not attempt if you cannot answer all)

1) Which of the following is true?

Select one:

A. Financial intermediaries transform claims in the process of channeling funds.

B. Securities firms transfer, but do not transform, claims in the process of channeling funds.

C. Both of the above.

D. None of the above.

2) A large domestic bank with headquarters in New York City that provides international lending and payment services to large, multinational business firms is most likely to be a:

Select one:

A. Money Center Bank

B. Regional Bank

C. Mid-Market Bank

D. Community Bank

3) Which of the following is true regarding bank charters?

Select one:

A. All U.S. commercial banks must be chartered in order to operate.

B. All U.S. banks must be federally chartered.

C. National banks are chartered by the Federal Reserve.

D. All of the above.

4) Which of the following is characteristic of fractional reserve banking?

Select one:

A. Restricting the access of depositors to money in their passbook savings accounts.

B. Maintaining sufficient bank reserves to cover all outstanding loans.

C. Making only long-term loans to both consumers and businesses.

D. None of the above.

5) When an investment bank underwrites a new security offering it

Select one:

A. makes a loan to the issuing firm.

B. sells securities to a company in need of capital.

C. transforms the claims of the issuing firm.

D. purchases the new securities and resells them to investors.

6) Which of the following is true of securities dealers?

Select one:

a. They are active in the secondary market, buying and selling previously issued securities.

b. They may own securities, which they inventory prior to selling to investors.

c. They may be involved in the distribution process for a new securities issue.

d. All of the above.

7) Which of the following statements is true regarding credit unions?

I. Credit unions specialize in making home mortgage and auto loans
II. Credit unions are tax-exempt institutions
III. Credit unions do not offer any insurance protection against the loss of member deposits

Select one:

a. I only

b. I and II only

c. I and III only

d. II and III only

8) The two broadest groups of financial institutions in the U.S. can be classified as

Select one:

a. financial intermediaries and securities firms.

b. depository and non-depository intermediaries.

c. commercial banks and thrift institutions.

d. money market firms and capital market firms.

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