Economics Practice Exam Questions

1. A trade quotais an explicit limit on the meat of exports of a dear from a country.is an explicit limit on the amount of imports of a favorable into a country.is a taxation only on exports.is a tax only on imports.2. An import tariffis an explicit limit on the amount of exports of a good from a country.is an explicit limit on the amount of imports of a good into a country.is a tax only on exports.is a tax only on imports.3. While an import tariff on a good will both raise the domestic hurt of that good and its domestic production levels, a quotawill not raise the domestic price but will increase the amount of the good produced domestically.will raise the domestic price but will not increase the amount of the good produced domestically.will both raise the domestic price and increase the amount of the good produced domestically.will neither raise the domestic price nor increase the amount of the good produced domestically.4. If the clam price of the German mark increases, then the German crossbreed has appreciated while the U.S. dollar has depreciated.the German Mark has depreciated while the U.S. dollar has appreciated.both the German Mark and the U.S. dollar have depreciated.both the German Mark and the U.S. dollar have appreciated.5. An exchange rate measuresthe price at which one can exchange one good for another good.the price at which one can exchange one resource for another resource.the discounted price one received when returning defective goods for exchange.the price at which one can exchange one currency for another currency.6. Consider the following two statementsThe U.S. dollar will depreciate when U.S. Demand for unusual goods increases.The U.S. dollar will depreciate in the present if the public believes that the U.S. dollar will depreciate in the future.both statements are true.both statements are false.I is true while II is false.I is false while II is true.