UNL Econ 321 Final Review
Jarrett Comprehensive
Questions with Verified
Answers Graded A+
International macroeconomics focuses on: - Answer: Interdependent and interconnected
nations
Economy-wide variables such as interest rates, income, prices, and wealth
Large-scale economic problems
Key elements of the international macroeconomy are: - Answer: Many currencies
Financial integration
Economic policy choices made in context.
Example of an exchange rate - Answer: One dollar for 3 pesos
Exchange rates exhibit: - Answer: Very different behavior, depending on whether the rates are
fixed or floating.
One reason exchange rates are NOT important is because: - Answer: They affect the profits of all
domestic producers.
A severe drop in the value of a nation's currency usually results in: - Answer: High inflation
, Which is not compatible with the others:
A deficit in the current account
Expenditure being greater than income (production) in a nation
A rise in national wealth
New borrowing from the rest of the world - Answer: A rise in national wealth
Emerging market countries are: - Answer: Mainly countries that are growing and becoming
more integrated into the global economy.
What is the difference between an open economy and a closed economy? - Answer: An open
economy has very few restrictions on trade or financial flows.
Since 1970, worldwide, governments have: - Answer: Lifted barriers to international capital
movements and trade.
The idea of dollarization is: - Answer: A nation's use of a foreign currency over which it has no
policy control.
Economists say that the relationship between good institutions and good economic results is: -
Answer: Good institutions are essential to good economic outcomes.
Optimal policies and policy regimes generally: - Answer: Require different approaches in rich
and poor countries.
Rent-seeking activities include: - Answer: Bribes, lobbying, favoritism.
Jarrett Comprehensive
Questions with Verified
Answers Graded A+
International macroeconomics focuses on: - Answer: Interdependent and interconnected
nations
Economy-wide variables such as interest rates, income, prices, and wealth
Large-scale economic problems
Key elements of the international macroeconomy are: - Answer: Many currencies
Financial integration
Economic policy choices made in context.
Example of an exchange rate - Answer: One dollar for 3 pesos
Exchange rates exhibit: - Answer: Very different behavior, depending on whether the rates are
fixed or floating.
One reason exchange rates are NOT important is because: - Answer: They affect the profits of all
domestic producers.
A severe drop in the value of a nation's currency usually results in: - Answer: High inflation
, Which is not compatible with the others:
A deficit in the current account
Expenditure being greater than income (production) in a nation
A rise in national wealth
New borrowing from the rest of the world - Answer: A rise in national wealth
Emerging market countries are: - Answer: Mainly countries that are growing and becoming
more integrated into the global economy.
What is the difference between an open economy and a closed economy? - Answer: An open
economy has very few restrictions on trade or financial flows.
Since 1970, worldwide, governments have: - Answer: Lifted barriers to international capital
movements and trade.
The idea of dollarization is: - Answer: A nation's use of a foreign currency over which it has no
policy control.
Economists say that the relationship between good institutions and good economic results is: -
Answer: Good institutions are essential to good economic outcomes.
Optimal policies and policy regimes generally: - Answer: Require different approaches in rich
and poor countries.
Rent-seeking activities include: - Answer: Bribes, lobbying, favoritism.
