APPLIED ECONOMICS EXAM.

16. Research shows that there is a positive net economic benefit to the receiving country and sending country.

a. True, b. Never, c. False, d. None of these are correct,

17. The following is/are reason/s why high-skilled immigrants make the receiving country better off,EXCEPT;

a. These people bring diverse talents

b. These people bring trouble

c. These people bring diverse specialty

d. None of these are correct

18. What is/are implications of low-skilled immigrants in the receiving country?

a. indirectly, allows native employed in a higher skilled jobs

b. They fill in jobs in which the natives are in short supply.

c. They contribute to rising level of inequality and poverty in the receiving country.

d. All of these are correct,

19. _______ plays an important role in the country's level of trade which is essential in a free market.

a. Exchange rate, b. Interest rate, c. Inflation, d. None of these are correct,

20. A higher currency makes a country's exports ______ and imports ________

a. More expensive;cheaper,

b. More expensive; more expensive,

c. Cheaper; more expensive,

d. None of these are correct,

21. A lower higher currency makes a country's exports ______and imports ______

a. More expensive; more expensive,

b. Cheaper; more expensive,

c. More expensive;cheaper,

d. None of these are correct,

22. "A declining exchange rate obviously the purchasing power of income and capital gains derived from any returns."

a. Decreases, b. Increases, c. has no impact d. none of these are correct

23. Inelastic demand for oil means that ______.

a. A rise in price causes only a large fall in demand

b. A rise in price causes only a small fall in demand

c. A rise in price causes no effect in demand

d. None of these are correct,

24. Which of the following is/are impact of oil price increase?

a. Producers will have an increase in,revenue,

b. consumers are affected such that the amount of oil purchase with the same amount of money is now lesser

c. Oil importers will see an increase in,cost of purchasing oil,

d. All of these are correct,

25. When the economy is weak and job are scarce, the unemployment rate is expected to _________

a. Have no change at all, b. Fall, c.Rise, d. None of these are correct,

26. An unemployed person's purchasing power _________

a. Decreases, b. Increases, c. Does not change at all, d. None of these are correct

27. The following is/are reason/s why a significant increase in oil price lead to higher inflation level,EXCEPT;

a. Price of goods and services increases,

b. Transportation costs of goods and,services increase,

c. Transportation costs of goods and,services decrease,

d. None of these are correct.,

28. What is/are the implications of chaos in a country?

a. People's purchasing power decreases.,

b. Foreign investors pull out,

c. Country's currency is expected to fall,against other countries',

d. All of these are correct,

29. The following is/are affected with there is political stability in the country, EXCEPT;

a.Industries,

b. Foreign investors,

c. Businesses,

d. All of these are correct,

30. Mia bought a foreign brand of bag. She observed, however, that the peso currency value against the dollar has weakened. Which of the following statement/s is/are TRUE?

a. The peso currency depreciated.,

b. the foreign bag has gotten more expensive

c. Mia's purchasing power in terms of pesos decreases

d. All of these are correct,