_ 20. What is a function of the World Trade Organization? A. creating demand by purchasing resources B. negotiating trade disputes C. supervising the Federal Reserve

____ 21. John Maynard Keynes believed that demand drives the economy. A. true B. false

____ 22. The actions the Federal Reserve takes to influence real GDP and the inflation rate are called monetary policy. A. true B. false

____ 23. A nation that imports more than it exports has a A. trade surplus. B. trade deficit.

____ 24. In the Federal Reserve, the member banks oversee the board of governors. A. true B. false

____ 25. An important way in which banks make money is loaning required reserves to investors. A. true B. false

____ 26. Free trade involves A. enacting tariffs and quotas. B. removing trade barriers between nations. C. placing an embargo on another nation.

____ 27. Which measure required people with no health insurance to buy it from private exchanges or the federal insurance marketplace? A. Medicaid B. Social Security C. the Affordable Care Act of 2010

____ 28. When the value of a currency increases, it is called A. currency appreciation. B. currency depreciation.

____ 29. Transferring government-owned businesses to private individuals is A. privatization. B. remittance. C. internal financing.

____ 30. OASDI, Social Security, and Medicare are funded by __________ taxes. A. FICA B. unemployment C. import

____ 31. An argument in favor of multinational corporations is that they introduce new technologies, services, and industries to less developed countries. A. true B. false

____ 32. What is an argument FOR free trade? A. It can raise the standard of living by making more goods available. B. It will create a greater demand for domestic products. C. It prevents competitor nations from finding comparative advantage.

____ 33. The organization of an economy for manufacturing is A. agrarianism. B. industrialization. C. balance of trade.

____ 34. What is an example of mandatory government spending? A. defense spending B. aid to state and local governments C. Social Security

____ 35. According to supply-side economic theory, __________ will encourage businesses to invest, which will create more jobs. A. lower taxes B. higher taxes C. higher tariffs