Question : 131) Other things being equal, an increase in the current : 1384552

Economics

131) Other things being equal, an increase in the current account deficit may be due to

A) an increase in private saving.

B) a fall in domestic investment.

C) a rise in the government’s budget surplus.

D) a fall in the government’s budget surplus.

E) a fall in the government’s budget deficit.

132) The problem of the “twin deficits” refers to

A) a decrease in domestic investment and an increase in the deficit on the capital account.

B) a decrease in the government’s budget deficit.

C) an increase in the government’s budget deficit and an increase in private sector borrowing.

D) having both a government budget deficit and a deficit on the current account.

E) an increase in private saving and a decrease in the capital account.

133) Which of the following policies could be implemented by the government in order to decrease its country’s current account deficit?

A) more stringent anti-trust policy

B) better fiscal stabilization policies

C) a contractionary fiscal policy

D) a reduction of public saving

E) wage and price controls

134) An increase in a country’s current account deficit

A) is desirable regardless of the cause of the change.

B) is undesirable regardless of the cause of the change.

C) is not desirable if it is caused by an increase in domestic investment.

D) might be desirable depending on the cause of the change.

E) is desirable if it is caused by a reduction in the level of private saving.

135) The theory of “purchasing power parity” (PPP) predicts that the

A) actual exchange rate will eventually exceed the PPP exchange rate.

B) actual exchange rate will eventually be lower than the PPP exchange rate.

C) actual exchange rate will eventually equal the PPP exchange rate.

D) there is no relationship between the actual exchange rate and the PPP exchange rate.

E) prices of of non-traded goods will be equalized across all countries.

136) Purchasing power parity

A) is an index of the average value of exchange rates.

B) is a theory that says price levels in two countries should be equal when measured in a common currency.

C) allows for both countries’ currencies to appreciate at their own rates of inflation.

D) will tend to cause those currencies with lower inflation rates to depreciate.

E) holds exactly in the short run but not in the long run.

137) If Canadian inflation is 4% while Japanese inflation is 7%, PPP theory predicts that the Japanese yen will ________ relative to the Canadian dollar.

A) depreciate by 11%

B) depreciate by 3%

C) appreciate by 3%

D) appreciate by 11%

E) appreciate by 28%

138) If a basket of goods costs 1000 euros in Europe and the Canadian dollar exchange rate is $1.40 = 1 euro, then according to the theory of PPP the same basket of goods should cost ________ in Canada.

A) $ 140.00

B) $ 714.29

C) $1000.00

D) $1400.00

E) $7142.90

139) If a basket of goods costs $1000 in Canada and the Canadian dollar exchange rate is $1.40 = 1 euro, then according to the theory of PPP the same basket of goods in Europe should cost ________ euros.

A) 140.00

B) 714.29

C) 1000.00

D) 1400.00

E) 7142.90

140) If a basket of goods costs 1000 euros in Europe and the Canadian dollar exchange rate is $1.50 = 1 euro, then the same basket of goods should cost ________ in Canada.

A) $ 150.00

B) $ 666.67

C) $1000.00

D) $1500.00

E) $6666.67

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July 1, 2023

1) Members of OSHA's $100,000 club have:

A) invested more than $100,000 in health and safety equipment for employees.

B) purchased health and safety insurance coverage of at least $100,000.

C) received fines of $100,000 or more for safety or health violations.

D) paid more than $100,000 in workers' compensation claims.

2) Workplace safety is a significant issue because approximately ________ employees were injured on the job in 2009.

A) 3,000,000

B) 1,000,000

C) 500,000

D) 250,000

3) According to the doctrine of contributory negligence, employers were:

A) not responsible for an employees' injury when another employee's negligence caused the injury.

B) not liable for an employee's injuries when that employee's own negligence caused the injury.

C) responsible for compensating employees for all work-related illnesses and accidents.

D) not responsible for any employees' injuries under any circumstances.

4) Workers' compensation laws vary by state, but all are built on the theory that:

A) employees' personal health insurance should pay the medical costs of any injuries.

B) work-related accidents are costs of doing business and should be paid for by employers.

C) governments are responsible for paying the medical costs related to an employee's injuries.

D) employers are not responsible for employee injuries resulting from the employee's own negligence.

5) Which of the following is a true statement about workers' compensation?

A) Workers' compensation laws are federally mandated and enforced by OSHA.

B) Non-union firms are not required to carry workers' compensation insurance.

C) Workers' compensation is not mandatory in all U.S. states.

D) Most states had workers' compensation programs by 1911.

6) Workers' compensation:

A) pays only if the worker cannot.

B) is considered a no-fault system.

C) is mandatory in all fifty states.

D) covers employees' medical costs with Medicaid.

7) The primary goal of state workers' compensation laws is best described as:

A) providing a means for injured workers to receive care and income without having to sue.

B) determining the cause of work-related accidents and minimizing future accidents.

C) ensuring that employers are not held responsible for accidents caused by worker negligence.

D) spreading the cost of workplace accidents among all workers in the state.

8) The ________ holds that employers are not held liable for an employee's injuries when the negligence of another employee contributed to or caused the accident.

A) doctrine of contributory negligence

B) fellow-servant rule

C) general duty provision

D) "no-fault" rule

9) Which of the following is most likely true?

A) Workers' compensation is a federal program. OSHA is the organization that helps individual states meet workers' compensation standards.

B) Workers' compensation is a federal program that provides compensation to employees injured on the job. OSHA is a federal program that creates and enforces safety standards in the work place.

C) OSHA is a federal program that creates safety standards for work environments. Workers' compensation programs are created by the individual states to provide compensation for employees injured on the job.

D) OSHA is a federal program that provides compensation for employees injured on the job. Workers' compensation programs are state programs that provide compensation for employees injured on the job.

10) Workers' compensation:

A) replaces the worker's entire income until he/she is able to work again.

B) provides benefits for permanent, but not temporary, impairment.

C) gives survivors burial allowances and income benefits.

D) covers medical expenses up to $100,000.