logo image

Ch. 23 & 24 True False

Through world trade, an economy can reach a point beyond its domestic production possibilities curve
true
Higher unemployment rates are linked with higher crime rates and higher rates of physical and mental illness.
true
Barriers to free trade impair efficiency in the international allocation of resources
true
An increase in incomes in the United States would tend to cause the dollar price of the Japanese yen to fall
false
Prices tend to be stickier in the shorter run than in the longer run
true
In the short run, firms are more likely to respond to demand shocks by altering inventory levels than by changing how much they produce
true
The “sticky price” model is the only one used by macroeconomists
false
Disposable income measures the before-tax income received by resource suppliers
false
At the end of the summer driving season, the demand for gasoline typically declines. This is an example of a negative demand shock
False
Banks and other financial institutions provide the link between savers and economic investors in the macroeconomy
true
In determining GDP by the expenditures method it is appropriate to use net investment rather than gross investment as a measure of investment spending
false
Personal income usually exceeds disposable income.
True
The expenditures and income approaches to GDP are expected to yield identical results because goods that are not sold in one year will be sold in some following year.
false
The simplest way to calculate GDP is to sum the total sales of all business firms.
false
A demand shock occurs when large numbers of consumers unexpectedly reduce their purchases of goods and services.
true
Negative demand shocks have a more significant impact on output and employment when prices are flexible.
false
The business cycle reflects both short-run fluctuations in output and long-run economic growth.
True
Interest on the public debt is included as a part of government purchases in determining GDP by the expenditures method.
false
Gross private domestic investment exceeds depreciation in an economy that experiences expanding production capacity.
true
The amount of investment in an economy is ultimately limited by the amount of savings in that economy.
True
When the dollar depreciates relative to the value of the currencies of the trading partners of the United States, then goods imported into the United States will tend to become more expensive.
true
When the dollar price of yen rises, the dollar appreciates in value relative to the yen.
False
If a farmer purchases 10 acres of farmland from a neighboring farmer, this would be considered an economic investment.
False
Within the circular flow model, the level of total resource income and total spending on output will be approximately equal.
true
A price index is 100 times the ratio of real GDP to nominal GDP.
false
Economists believe that expectations have little impact on macroeconomic outcomes
false
Welfare payments to low-income families are included in national income.
false
A nation has a comparative advantage in some products when it can produce that good at a lower domestic opportunity cost than can a potential trading partner.
true
Shocks occur when actual events do not match expectations.
true
The economic integration of nations creates larger markets for firms within the nations that integrate and makes it possible for these firms and their customers to benefit from the economies of large-scale (mass) production.
true
NDP can be determined by adding taxes on production and imports to GDP.
false
All expenditures on new construction are included as investment in calculating GDP.
true
Output per person has grown steadily since the beginning of the Roman Empire.
false
Nominal GDP measures a nation’s output in current year prices.
true
Prices tend to be sticky because sellers know that consumers prefer stable prices.
true
Economists and policymakers are generally more concerned about nominal GDP than real GDP
false
Any person without a job is considered to be unemployed.
False
Exports are subtracted from imports in calculating U.S. GDP because exports are not available for domestic consumption.
false
The Smoot-Hawley Tariff Act of 1930 reduced tariffs in the United States to the lowest level ever in an attempt to pull the nation out of the Great Depression.
false
Mexican importers are suppliers of pesos in the foreign exchange market.
true
In 2007, unemployment rates in the United States exceeded the rates in Germany, India, and Poland.
false
Modern economic growth refers to any situation where a nation’s output increases.
false
The purchase of Wal-Mart stock is a part of gross investment, but not of net investment
false
A nation that wants to invest in more newly created capital in the present must be willing to forgo present consumption.
true
China’s GDP per person in 2007 was a little more than one-tenth of U.S. GDP per person in the same year.
false
If real GDP is 50 and nominal GDP is 100, the GDP price index is 200.
true
Import quotas are taxes or duties on imported products.
false
In order to achieve modern economic growth, a nation’s output must grow faster than its population.
true
In the very short run, firms tend to respond to demand shocks by changing their prices.
false
A nation that realizes a 3 percent increase in its output per person is experiencing modern economic growth.
True
Milk prices tend to be stickier than gasoline prices.
True
If nominal GDP is 150 and the GDP price index is 200, real GDP is 75
true
The term “economic investment” refers only to money spent purchasing newly created capital goods such as factories, tools, and warehouses.
true
The United States exports a higher U. S. dollar volume of goods to Canada than to any other nation.
true
Real GDP measures the change in the price level over time.
false
“Supply shocks” occur any time there is a change in the supply of goods and services.
false
Increasing investment in the present means forgoing future consumption.
False
Economists refer to purchases of stocks and bonds as “investment.”
false
Prices tend to be more flexible when there are only two or three rival firms rather than a large number of sellers in the market.
false
Demand shocks cause problems in the macroeconomy primarily because prices are sticky.
true
In the very short run, demand shocks will tend to change the level of output but have little effect on prices.
True
Economists believe that most short-run fluctuations in output are the result of supply shocks.
false
Specialized production and international trade increase a nation’s productivity and increase the availability of goods and services.
true
Inflation reduces the purchasing power of a person’s income and savings.
true
Demand shocks may be positive or negative.
true
One reason that trade restrictions get public support is that the alleged benefits of the restrictions are often immediate and clear-cut, but the adverse affects are often obscure and dispersed over the economy.
true
If Ford Motor Company purchases factory equipment previously used by General Motors, this would be considered an economic investment.
false

Need essay sample on "Ch. 23 & 24 True False"? We will write a custom essay sample specifically for you for only $ 13.90/page

Can’t wait to take that assignment burden offyour shoulders?

Let us know what it is and we will show you how it can be done!
×
Sorry, but copying text is forbidden on this website. If you need this or any other sample, please register

Already on Businessays? Login here

No, thanks. I prefer suffering on my own
Sorry, but copying text is forbidden on this website. If you need this or any other sample register now and get a free access to all papers, carefully proofread and edited by our experts.
Sign in / Sign up
No, thanks. I prefer suffering on my own
Not quite the topic you need?
We would be happy to write it
Join and witness the magic
Service Open At All Times
|
Complete Buyer Protection
|
Plagiarism-Free Writing

Emily from Businessays

Hi there, would you like to get such a paper? How about receiving a customized one? Check it out https://goo.gl/chNgQy

We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy