Question 1 1 pts Despite comparative advantage and specialization, in the real world we often see that a high proportion of trade is O unrelated to economies of scale O unlinked to division of labor among different industries intra-industry Question 2 1 pts In the foreign exchange market, the result of increased U.S. government borrowing from British investors would be a decrease in the quantity of dollars traded O a higher exchange rate (British pound/dollar) an increase in the quantity of dollars traded a lower exchange rate (British pound/dollar) Question 3 1 pts If the ceteris paribus assumption is false, the laws of supply and demand cannot be impacted, regardless are guaranteed to be reinforced are not guaranteed to holdare always true Question 4 1 pts Read carefully. If a country's economic data show that the trade deficit (inflow of foreign savings) equals 88 million dollars, the government budget deficit equals 42 million dollars, and private investment equals 175 million dollars, then what does private savings (S) equal in millions of dollars? Question 5 1 pts Alternate Outputs from One Day's Labor Input: Brazil: 4 bushels of corn or 25 tons of lumber. Argentina: 33 bushels of com or 10 tons of lumber. The opportunity cost of one ton of lumber in Brazil is approximately . Note: round your answer to the nearest hundredth (two decimal places). Question 6 1 pts Read carefully. In Japan one person can produce 130 pounds of rice or 40 shirts in one year. In Thailand one person can produce 300 pounds of rice or 200 shirts in one year. Which of the following statements is true? Japan has an absolute advantage in the production of rice. Thailand has a comparative advantage in the production of rice. Japan has a comparative advantage in the production of rice.Japan has an absolute advantage in the production of shirts. Question 7 1 pts Suppose an economy has private investment (1) equaling 347 million dollars. If that country's economic data show private savings of 153 million dollars and public savings of 10 million dollars, then what must that country's trade deficit equal in millions of dollars? Question 8 1 pts The national saving and investment identity is written as S = 1 + (X - M) + (G - T) when the economy records a budget deficit, but also a trade surplus budget surplus, and also a trade surplus budget surplus, but also a trade deficit O budget deficit, and also a trade deficit Question 9 1 pts When governments are borrowers in financial markets, which of the following is one of the 3 possible sources for the funds from a macroeconomic point of view? Private firms borrowing more O Fewer foreign financial investors from outside the country Households saving more A negative money supplyQuestion 10 1 pts If the government enacts fiscal policy, it is most likely to result in expansionary; a lower level of prices expansionary; a lower level of real output contractionary; a higher level of real output contractionary; a lower level of prices Question 11 1 pts Suppose that gamers have the following demand for packs of batteries. Demand for batteries Price per pack of batteries Quantity demanded for packs of batteries $5.00 47 $6.00 38 $7.00 20 $8.00 Using the midpoint method, calculate the price elasticity of demand as the price per pack of batteries increases from $6.00 to $7.00. Note: type your answer as a number with no negative sign. In our course, we drop the negative sign from price elasticity of demand results. Round your answer to the nearest hundredth (two decimal places).Question 12 1 pts An expansionary fiscal policy would attempt to aggregate demand by, for example, taxes. decrease; cutting increase; expanding O decrease; expanding O increase; cutting Question 13 1 pts On the spectrum of exchange rate policies, a policy where the currency is made identical to the currency of another nation is known as hard exchange rate pegs merging currencies O floating exchange rates soft exchange rate pegs Question 14 1 pts The unemployment rate in a town with a total labor force of 32,247 persons and unemployment of 6,591 persons is approximately _ percent. Note: type your answer as a percentage-for example, 50.67 as opposed to 0.5067. Round your answer to the nearest hundredth (two decimal places). Question 15 1 ptsIf government tax policy requires Jim to pay $50,000 in taxes on annual income of $120,000 and Jake to pay $50,000 in tax on annual income of $140,000, then the tax policy is O regressive O optional O proportional O progressive Question 16 1 pts Which of the following is counted as part of the M2 money supply? The physical capital in an economy A blank physical check sitting in someone's checkbook A relatively small certificate of deposit worth $1,000 A large certificate of deposit worth $15 million Question 17 1 pts Adjusting GDP measures for different countries using typically provides the best measure for equalizing purchasing power. the velocity of money O PPP central bank open market operations the budget lineQuestion 18 1 pts If the price index moves from 136 to 139, the rate of inflation is approximately . Note: type your answer as a percentage-for example, 50.67 as opposed to 0.5067. Round your answer to the nearest hundredth (two decimal places). Question 19 1 pts Suppose the level of real GDP is currently below potential GDP and economists believe the economy is operating in the Keynesian zone of the SRAS curve. In response, the government would most likely pursue fiscal policy expansionary; in order to increase real GDP and avoid/minimize recession expansionary; because unemployment must be low and a recession is not currently a major concern contractionary; because aggregate demand appears to be too high contractionary; in order to reduce the level of real GDP Question 20 1 pts According to the law of demand a decrease in price will result in a decrease in quantity demanded an increase in price will result in a decrease in quantity supplied an increase in price will result in an increase in quantity demanded an increase in price will result in a decrease in quantity demanded Question 21 4 ptsSay that the average worker in Mexico has productivity of $16 per hour while the average worker in Spain has productivity of $22 per hour (both measured in U.S. dollars). Over the next 13 years, say that worker productivity in Mexico grows at 11% per year while worker productivity in Spain grows at 2% per year. How much higher will the productivity level be in Mexico after 13 years? $ per hour Note: round your answer to the nearest hundredth (two decimal places). For partial credit, feel free to show your work as a comment on your exam submission