TEST ECO4ESO 502 - Created by Antonio Ginés

What do high interest rates do?
1. Encourage savings
2. Discourage savings
3. The other answers are correct
What will happen to the demand to buy goods and services if families ask for money?
1. That it decreases
2. That it increases
3. The other answers are correct
How can the contraction of the money supply be indirectly achieved?
1. Decreasing nominal interest rates
2. Increasing nominal interest rates
3. The other answers are correct
Who considers that fiscal policy, or public spending and taxation, are ineffective in controlling inflation?
1. The Classics
2. They Keynesians
3. The Monetarists
Who considers that monetary supply is a main cause, but not the only cause of inflation?
1. The Monetarists
2. The Classics
3. The Keynesians
What generates demand inflation?
1. A faster rate of economic growth
2. A slower rate of economic growth
3. The other answers are correct
What inflation can be causes by natural disasters?
1. The cost inflation
2. The demand inflation
3. The supply inflation
What inflation can be caused by increased oil prices?
1. The supply inflation
2. The cost inflation
3. The demand inflation
What type of inflation is based on the assumption that workers try to keep their wages above prices?
1. The demand inflation
2. The cost inflation
3. The self-built inflation
How is inflation usually measured?
1. Through the Consumer Price Index
2. Through the Industrial Price Index
3. Through the Business Price Index
What are the types of unemployment?
1. The frictional, the classic, and the cyclical
2. The other answers are correct
3. The structural and the seasonal
What type of unemployment would disappear or decrease if job seekers knew that they would be employed for a particular vacancy?
1. The cyclical
2. The frictional
3. The classic
What is classical unemployment also called?
1. Keynesian unemployment
2. Cyclical unemployment
3. Real wage unemployment
What do liberal economists like F.A. Hayek think happens if the government intervenes in the economy to try to improve the conditions of those with jobs by establishing a Minimum Wage?
1. That unemployment increases
2. That unemployment decreases
3. The other answers are correct
What do the laws that restrict firing produce?
1. That the hiring of young people increases
2. That leave many young people unemployed
3. The other answers are correct
What is the unemployment-deficient demand?
1. The cyclical
2. The other answers are correct
3. The Keynesian
In the late 1990s there was a technology bubble, creating demand for IT specialists. In 2000-2001 this bubble burst. A housing bubble soon formed, creating demand for real estate agency workers, and many computer scientists had to retrain to find employment. What type of unemployment is the above and example of?
1. The cyclical
2. The classic
3. The structural
What type of unemployment occurs when an occupation isn't in demand in certain seasons?
1. The seasonal
2. The structural
3. The classic
What type of unemployment is classical unemployment?
1. Voluntary
2. Involuntary
3. The other answers are correct
What is the exchange of capital, goods and services across international borders or territories?
1. International exchange
2. International bartering
3. International trade
What are the theories of international trade?
1. That of the absolute advantage and that of comparative advantage
2. That of the total advantage and that of partial advantage
3. That of intrinsic advantage and that of extrinsic advantage
Which theory explains part of international trade but doesn't fully explain international trade?
1. The one with the total advantage
2. The one with the absolute advantage
3. The one with the comparative advantage
Which theory explains how trade can create value for both parties even when one produces all goods with fewer resources that the other?
1. The one with total advantage
2. The one with absolute advantage
3. The one with comparative advantage