WRITTEN ASSIGNMENT #6 Rubric Answers Spring 18

I. Answer the following multiple choice questions (2 points each): 1. Fiscal Policy is . a) Limits on the amount of a product imported b) Recurring pattern of ups and downs in the nation's business activity c) Government’s taxing and spending decisions which are intended to improve the economy d) Deep extended decline in the nation's economy. 2. Which of the following is NOT an important U.S. import? a) electronic products b) motor vehicles c) aircraft d) coffee and tea 3. When a country spends more on imports than it earns on exports, it has a . a) trade deficit b) trade surplus c) balanced trade d) shortage of trade 4. A tax on imported goods is called . a) entrance tax b) exit tax c) tariff d) excise tax 5. A deep, extended decline in a nation’s economy is a . a) deficit b) recession c) depression d) displacement 6. When individual nations prosper, the world economy . a) grows b) declines c) lapses d) competes 7. Goods and services sold by one country to another are called its . a) imports b) exports c) GDP d) bartering 8. The price of one currency in terms of another currency is the . a) inflation b) absolute rate c) exchange rate d) recession rate