ECO 320 Ashford 4 Week 3 Quiz Solution (Latest Update)

ECO 320 Ashford 4 Week 3 Quiz Solution (Latest Update)

1. Which of the following is a precondition for economic growth? (Points : 1) 2. The possession of primary products in a developing country could: (Points : 1) 3. The following countries has a large amount of economic freedom? (Points : 1) 4. The production function: (Points : 1) Question 5. 5. The rule of law is important to economic growth as it is necessary for theenforcement of . (Points : 1) 6. Which of the following statements is false? (Points : 1) Question 7. 7. A record of all economic transactions between residents of one country with the rest of the world is called: (Points : 1) Question 8. 8. Which of the following is not one of the components of GDP? (Points : 1) Gross private domestic investmentConsumption by the publicGovernment spending on goods and services Foreign direct investment by U.S. corporations9. The value of final output measured in current prices is: (Points : 1) Question 10. 10. When GDP is larger than the sum of C, I, and G, then: (Points : 1) Question 11. 11. The foreign exchange market is composed of: (Points : 1) 12. One of the most important interest rates in the world economy is: (Points : 1) Question 13. 13. A is when two parties agree to exchange different currencies over a specified period of time. (Points : 1) futures contractoptioncurrency swapXR contractQuestion 14. 14. If an importer wants to protect a transaction against exchange rate fluctuations he/she can use the: (Points : 1) spot rate.forward rate.strike price.future spot rate.15. The principle of states that if the returns on various assets do not move together identically, then holding a portfolio of assets will be less risky than holding asingle asset. (Points : 1) Question 16. 16. An example of depreciation of the dollar would be if the number of Mexican pesos a dollar would purchase went from to . (Points : 1) 100, 125125, 150150, 180200, 180Question 17. 17. As the Mexican peso appreciates, exports from Mexico become and imports into Poland become . (Points : 1) 18. As the dollar depreciates: (Points : 1) the quantity supplied of foreign exchange increases.the quantity supplied of foreign exchange decreases.the supply of foreign exchange decreases.the supply of foreign exchange increases.Question 19. 19. If the initial exchange rate is 120 yen per dollar and then falls to 110 yen per dollar, we would say that the yen has: (Points : 1) Question 20. 20. Import competing industries in the U.S. are likely to resist: (Points : 1)


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