Which of the following would likely cause the dollar to depreciate?
a) Rising interest rates in the United States.
b) An increase in United State citizens' preference for foreign goods.
c) Income growth of the United States lagging behind that of other countries.
d) Lower inflation in the United States.
Ans: b) An increase in United State citizens' preference for foreign goods.
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The amount of unemployment that policymakers should not worry about because it constitutes no social problem is
A) 2 percent of the labor force. B) 4 percent of the labor force. C) not any single amount that can be clearly measured. D) the amount that can exist without causing a recession. E) the amount that is due to people's choices among available alternatives.
If opportunity costs are constant, the production possibilities frontier would be graphed as
A) a negatively sloped straight line. B) a ray from the origin. C) a positively sloped straight line. D) a negatively sloped curve bowed in toward the origin.
Which of the following is an example of the U.S. government's use of a "command-and-control" approach to reducing pollution?
A) In 1990 Congress approved measures designed to reduce sulfur dioxide emissions to 8.5 million tons annually by 2010. B) The government issued electric utilities tradable emission allowances in order to reduce emissions of nitrogen oxide. C) In the 1980s the U.S. government required the installation of catalytic converters to reduce emissions from all new automobiles. D) The U.S. government imposed a tax on electric utilities to reduce damages from acid rain.
An increase in capital outflows from the United States will
A) decrease the balance on the capital account. B) decrease the balance on the financial account. C) increase the balance on the financial account. D) increase the balance on the current account.