Economics Review

Which of these is represented by the Gross Domestic Product (GDP)?

• The amount of reserve that banks are required to hold

• The change in the average price of consumer goods and services

• The rate of interest charged on reserves lent to banks

• The total value of goods and services produced within a nation

The United Nations was organized to...

• Create a single world currency

• Decrease trade barriers

• Establish a military alliance

• Prevent further world wars

Which of these is an example of an economic sanction?

• Creating trade alliances with bordering countries

• Restricting trade with a country that has a poor human rights record

• Providing poor countries with humanitarian aid

• Refusing to meet with a diplomatic representative of a dictatorship

The US most likely joined the International Monetary Fund (IMF)

• Create a military alliance with member nations

• Establish a single currency among member nations

• Increase economic stability in other nations

• Provide medical care to developing nations

Which of these statements about the North Atlantic Treaty Organization (NATO) is true?

• An armed attack against one member is considered an attack against all members

• An executive panel controls legislation passed in member nations.

• Members are prevented from conducting trade with non-member nations.

• Members are required to open their boarders to immigrants from other nations.

The US protects its national security most directly by

• Passing environmental laws

• Entering into military alliances

• Providing low interest loans to poor nations

• Signing free trade agreements with bordering nations

The World Bank is most associated with which of the following activities?

• Offering military expertise

• Providing loans to poor countries in need

• Supplying medical care after natural disasters

• Supporting political candidates

Which of these best reflects how the federal government manages the economy through fiscal policy?

• Buying and selling securities

• Controlling interest rates

• Controlling the money supply

• Taxing and spending

Which of the following is an example of the United States government providing foreign aid?

• placing an embargo on foreign sugar

• signing a nuclear arms control treaty

• sending medical supplies to foreign doctors

• increasing immigration restrictions

Which of these economic indicators would be most useful for determining the rate of inflation (rise in prices).

• GDP (Gross Domestic Product)

• Discount Rate

• CPI (Consumers Price Index)

• Unemployment Rate