Econ final

Which resource is most closely related to human capital?

• infrastructure

• population

• Airports

• Literacy rates

. Sometimes, rather than making loans to developing nations, foreign governments give money and other forms of aid.

Which of the following would fall into the category of “other forms” of government aid referred to in the sentence above?

• humanitarian assistance

• Internal financing

• Foreign portfolio investment

• Foreign direct investment

Select a country of your choice and explain why you think that nation is either developed or less developed. Use specific examples in your response

1. Under what circumstances might the government use contractionary fiscal policy?

• when it is trying to increase government revenue

• when it is trying to increase government spending

• when it is trying to fight inflation

• when it is trying to end a recession

The federal budget is the instrument by which the government implements

• Central planning of the economy

• Monetary policy

• Fiscal policy

• Free market ideals

Why do banks usually choose to borrow from one another instead of from the Federal Reserve?

What are the challenges of globalization?

What is the difference between mandatory and discretionary spending?

To make their sales taxes less regressive, some states exclude certain everyday items, such as food or clothing, from the tax. Explain why such action might make a tax less regressive.

• because the poor spend most of their income on Those necessities and it would be half their income

• Because the rich don’t need to worry about them

• Because the tax is already so high

• Because taxes haven’t been implemented on those areas