Problem 1: A quota is
a. a tariff on exports
b. a quantitative limit on the amount of a good that may be imported
c. the same as a non-prohibitive tariff
d. the amount of exports a country needs to finance its imports
e. a per-unit cash rebate to an exporter
Problem 2: Suppose under a system of flexible exchange rates a black-and-white TV costs $150 in the U.S. and 18,600 yen in Japan. Other things being equal, the exchange rate is
a. 1 yen = $0.08
b. 8 yen = $1.00
c. 1 yen = $0.28
d. 124 yen = $1.00
e. 800 yen = $1.00
Problem 3. Economic resources or factors of production are often classified into three categories. These three are
a. air, water, and land
b. technology, capital, and labor
c. labor, capital, and land
d. land, technology, and people
Problem 4. The current Chairman of the Federal Reserve is
a. Allen Greenspan
b. N. Gregory Mankiw
c. Harvey S. Rosen
d. Ben S. Bernanke
e. Murray L. Weidnbaum
Problem 5. Our money has value because
a. it is backed by gold
b. its supply is unlimited
c. it is guaranteed by banks
d. people will accept it in payment for goods and services
e. it is the result of pubic and private debt