Question 1.

Which description below corresponds to the United Nations Intergovernmental Panel on Climate Change?

a.A governing body that includes U.N. members who signed the Kyoto Protocol in 1997

b.A nonprofit organization that employs a panel of leading economists to conduct cost/benefit analysis on policies intended to address global problems

c.A global organization comprised of 2,000 scientists and researchers that is focused on the impact of climate change

d.An organization devoted to taking regulatory action to reduce the negative effect of externalities produced by businesses

Question 2

GDP is useful in evaluating which of the following?

a.The quality of life or the well-being of a population

b.The production of firms that are owned by domestic nationals but located overseas

c.Increases in domestic consumption

d.An economy of a country producing a significant amount abroad

Question 3

Select the statement below that is true of only CPI.

a.Published by the Bureau of Labor Statistics

b.Provides a way to measure inflation

c.Divided up into crude, intermediate and finished goods

d.Captures the price variation between consumer goods, with goods held constant

Question 4

Which of the following statements corresponds to a trade barrier?

a.When unemployment is low, the opportunity cost of production becomes zero because resources are available that are otherwise not being utilized.

b.Most economists agree this is not a good idea when the economy is at full employment.

c.In this situation, a country must give up the chance to produce one good for another.

d.Mutual gains from this assume full employment.