Question 31 If a countrys income grows at the rate of 5 perc

Question 31

If a country\'s income grows at the rate of 5 percent a year, it doubles in about

Select one:

a. ten years.

b. eight years.

c. six and one-half years.

d. twenty years.

e. fourteen and one-half years.

Question 32

An increase in the U.S. demand for the Mexican peso

Select one:

a. causes an increase in the U.S. dollar price of a Mexican peso.

b. causes the U.S. dollar to depreciate.

c. causes Mexican goods to be cheaper.

d. causes the Mexican peso to appreciate.

Question 33

Which of the following is NOT a characteristic of populist regimes?

Select one:

a. Nationalistic ideologies

b. Focus on income redistribution

c. Focus on controlling inflation

d. Focus on economic growth

e. Using economic tools to reach specific goals regarding labor, the orientation of business or the role of foreigners

Question 34

The terms of trade are

Select one:

a. exports plus imports divided by GDP.

b. the value of the real exchange rate.

c. the ratio of export prices to import prices.

d. the terms negotiated in a trade agreement.

Question 35

U.S. opponents of NAFTA argued that the agreement will hurt the United States. In their view, NAFTA\'s greatest harm will be its

Select one:

a. harmonization of labor policies.

b. harmonization of the use of pesticides and herbicides.

c. harmonization of environmental policies.

d. harmonization of product safety standards.

e. job destruction and downward pressure on U.S. wages.

Solution

Ans 31)

As per 70 rule it states that when x is the interest rate then principle gets doubled in 70/x years

Now x=5% then it will take 70/5 years to get double principle hence 14 years is the answer

Option E is correct answer

Ans 32)

When Demand for any currency increases relatively that currency gets aprreciated , its export loses competitiveness that is goods produced by that country becomes relatively expensive, US dollar will depreciate certainly

Option a, b & d are correct ( I think you have given less options or option E is missing)

Ans 33)

The only option is C because controlling inflation is the main objective of central bank of that country which works as an identity seperate from government most of the time

Ans 34)

Term of trade is ratio of exports to imports becuase term of trade by definition is relative price of import in terms of exports

Hence option C is correct response

Ans 35)

Option E is the correct answer