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Category > Economics Posted 07 May 2020 My Price 20.00

ECO 102 Macroeconomics Unit 4 Milestone 4 Sophia Course

ECO 102 Macroeconomics Unit 4 Milestone 4 Sophia Course

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Which statement below describes the effect of expansionary policy on the economy?



AD shifts to the left.



It decreases consumer willingness to purchase.



If AD increases past full employment, prices will rise and return us to equilibrium.



It decreases the money supply.

Monetary and Fiscal Policy

Which of the following reflects price changes for goods in various stages of production, from raw to intermediate and final goods?



PPI



Consumer confidence



CPI



Nonfarm payroll

PPI/CPI/Deflator

Which of the following graphs represents a peak in the economy?



Business Cycles, Aggregate Demand, and Aggregate Supply

Select the equation below that corresponds to income that can be consumed, saved or paid as taxes.



X<M



Y=C+I+G+X



Y=C+S+T+M



X=M

Role of International Trade

Which statement below regarding sustainable economic growth is FALSE?



A recession is a sustainable level of production.



Producing or consuming more does not always equate to long term economic growth.



In a recession, public policy could help an economy return to full employment.



When equilibrium is to the right of the LRAS, that is a sustainable level of production.

Sustainable Economic Growth

Which of the following is one of the problems with using fiscal policy to reduce the severity of business cycles?



It takes too long for consumers to respond to fiscal policy.



It is often implemented too late to be effective.



It should be based on rules that allow the money supply to grow at a consistent rate.



Policies that are implemented could interfere with business investments of capital.

Pros and Cons of Monetary and Fiscal Policy

Select the FALSE statement below regarding international environmental regulations.



Externalities accrue to the firm that produces the good in question.



At a macro level, externalities can lead to global changes.



Firms over-produce products that impose costs on society.



The Copenhagen Consensus is an example of an organization that outlines costs and benefits of different ways to respond to climate change.

International Regulatory Environment

Which of the following are we NOT able to tell about a country's economic health by looking at labor force participation rates by gender?



Measure of income inequality



Level of gender equality



Standard of living



Access and availability of jobs

Labor Force Participation Rates by Gender

Which of the following describes one of the unexpected benefits of China's economic policies?



The standard of living in the U.S. increased.



The GDP of the U.S. increased, and the GDP of China decreased.



The Chinese central bank printed extra currency to exchange with the U.S.



U.S. exports to China increased.

International Trade and Aggregate Demand

When is GDP roughly the same as GNP?



For countries with a large amount of foreign direct investment and return of profits to country of origin



For countries that rely on production owned by nationals located overseas that is not offset by foreign investment



For countries that have a higher growth trajectory than others



For countries where nationals’ offshore production is countered by domestic production by foreigners

International Comparisons

Which of the following factors would increase if the standard of living were increasing?



Population growth



Gender bias toward educational attainment level



Ethnic bias toward employment



Literacy rate

Global Indicators of Standard of Living

Which of the following is one of the benefits of women being employed in occupations that pay a living wage?



A higher birth rate



Higher resource availability to children



A higher amount of home responsibilities



A higher level of income inequality

Labor Force Participation Rates by Gender

Which of the following statements corresponds to a trade barrier?



When unemployment is low, the opportunity cost of production becomes zero because resources are available that are otherwise not being utilized.



Most economists agree this is not a good idea when the economy is at full employment.



In this situation, a country must give up the chance to produce one good for another.



Mutual gains from this assume full employment.

Analysis Trade Barriers

Determine which statement below is true of ONLY contractionary policy.



This includes monetary and fiscal policy



Lowering interest rates are an example of this



Too much of this can lead only to inflation



This can help reduce unsustainable levels of production

Monetary and Fiscal Policy

Select the true statement below regarding economic indicators.



Economic indicators are macroeconomic by their very nature.



Economic indicators provide a long term view of the economy.



Trends that describe what has already happened are considered coincident indicators.



One single indicator can perfectly describe what is going on in the economy.

Understanding Indicators

Determine which statement below regarding international trade is FALSE.



An increase in imports will cause a rightward shift in AD.



Trade surplus occurs when exports exceed imports.



A recession in one country can have a negative effect on AD in another country.



If the dollar is weak, people in other countries will purchase more U.S. products.

International Trade and Aggregate Demand

Which of the statements below regarding global poverty is FALSE?



Developed countries have a higher level of poverty than developing countries.



The increasing global population has also increased poverty.



GDP does not accurately portray a country's standard of living.



Life expectancy, birth and death rates also provide a sense of the poverty level in a country.

Global Indicators of Standard of Living

Select the statement below that is true of only GNP.



This does not measure domestic investment in foreign countries.



This is not a true quality-of-life indicator, but does indicate consumption.



This includes production by people outside of a country's borders.



This is known as a lagging indicator.

Real GDP

Suppose Venezuela can produce petroleum at a lower opportunity cost because of its natural resources, and China can produce clothing at a low opportunity cost because of its population and level of industrial development.

Which statement below regarding comparative advantage is NOT true?



Venezuela can produce clothing at low opportunity cost.



China can produce petroleum at high opportunity cost.



Venezuela has a comparative advantage in petroleum production.



China has a comparative advantage in clothing production.

Rationale: Comparative Advantage

In which of the following circumstances would it be appropriate to use expansionary policy to increase GDP?



When the economy is in long run equilibrium



When the economy is in a recession



When resources are being used faster than they can be replaced



When the economy is operating beyond full employment

Sustainable Economic Growth

Which of the following is a socially responsible activity that could include corporate/employee matching contributions?



Philanthropy



Supply chain



Environmental management



Corporate governance

Corporate Social Responsibility

Which statement below is true of ONLY fiscal policy?



Used to alter AD



Uses government expenditures to create demand



Increases the availability of money



A policy typically set by a banking authority

Monetary and Fiscal Policy

Which of the following is NOT one of the reasons why it is difficult to determine whether a business practice is sustainable or unsustainable?



Business owners have a clear incentive to only use practices that take into consideration long term consequences.



We cannot objectively say whether a policy is negative or positive.



Unsustainable levels of production could be positive in the short term and negative in the long term.



The costs and benefits of policy accrue differently to different stakeholders.

Sustainable Economic Growth

Which of the following indicators will most likely increase as a result of the increase in the U.S. poverty rate?



Wealth mobility



Income polarization



Employment rate



Life expectancy

Global Indicators of Standard of Living

Which of the following is NOT an effect of our country running a trade deficit?



An appreciation of our currency due to the trade deficit



Our capital account running a surplus



A deficit in our current account



Foreigners investing in our country to offset the deficit

Role of International Trade

Which of the following describes one of the unexpected benefits of China's economic policies?



The standard of living in the U.S. increased.



The GDP of the U.S. increased, and the GDP of China decreased.



U.S. exports to China increased.



The Chinese central bank printed extra currency to exchange with the U.S.

International Trade and Aggregate Demand

Increasing employment of women in living wage occupations is linked with which of the following?



Women working longer hours than men



The informal sector



A higher standard of living for families



Occupational segregation and gender wage gaps

Labor Force Participation Rates by Gender

Which statement below regarding comparative advantage is NOT true?



Venezuela has a comparative advantage in petroleum production.



China can produce petroleum at high opportunity cost.



China has a comparative advantage in clothing production.



Venezuela can produce clothing at low opportunity cost.

Rationale: Comparative Advantage

Which of the following would be true of policies taken during times of BOTH high and low unemployment?



Reducing the money supply will reduce inflation.



Cutting taxes will cause an increase in GDP.



Increasing government spending will stimulate the economy.



The multiplier effect will magnify the influence of policies.

Monetary and Fiscal Policy

According to the graph shown here, at which of the following points is production unsustainable?



AS2

Business Cycles, Aggregate Demand, and Aggregate Supply

Determine which statement below is true of high unemployment.



This is when there is the strongest case for comparative advantage.



Trade barriers can be beneficial for the domestic economy.



It occurs when the economy is at its long run supply capacity.



Resources are being overutilized.

Analysis Trade Barriers

If the US dollar strengthens relative to the euro, which of the following statements will be true?



Demand for U.S. products will increase.



European demand for U.S. goods will decrease.



Consumers everywhere will find American products inexpensive.



Demand for U.S. goods will stay the same.

International Trade and Aggregate Demand

Select the statement below that is FALSE regarding corporate social responsibility.



Sustainability involves holding the supply chain accountable.



Corporate governance includes oversight of all production and financial operations.



Philanthropy by a business always benefits the shareholders of the company.



Producing in ways that are sustainable would be an example of corporate social responsibility.

Corporate Social Responsibility

Which of the following are we NOT able to tell about a country's economic health by looking at labor force participation rates by gender?



Access and availability of jobs



Level of gender equality



Standard of living



Measure of income inequality

Labor Force Participation Rates by Gender

Select the statement below that is true of only CPI.



Divided up into crude, intermediate and finished goods



Provides a way to measure inflation



Captures the price variation between consumer goods, with goods held constant



Published by the Bureau of Labor Statistics

PPI/CPI/Deflator

Select the true statement below regarding economic indicators.



Economic indicators provide a long term view of the economy.



Economic indicators are macroeconomic by their very nature.



One single indicator can perfectly describe what is going on in the economy.



Trends that describe what has already happened are considered coincident indicators.

Understanding Indicators

Select the FALSE statement below regarding international environmental regulations.



The Copenhagen Consensus is an example of an organization that outlines costs and benefits of different ways to respond to climate change.



Firms over-produce products that impose costs on society.



Externalities accrue to the firm that produces the good in question.



At a macro level, externalities can lead to global changes.

International Regulatory Environment

Which statement below regarding the stagflation of the late 1970s/early 1980s is true?



Disruptions in the oil supply caused the LRAS curve to move to the left.



Expansionary fiscal policy led to double digit inflation.



Expansionary fiscal policies succeeded in lowering the unemployment rate.



The Phillips curve represented the state of the economy at the time.

Pros and Cons of Monetary and Fiscal Policy

GDP is useful in evaluating which of the following?



The production of firms that are owned by domestic nationals but located overseas



The quality of life or the well-being of a population



Increases in domestic consumption



An economy of a country producing a significant amount abroad

Real GDP

Which of the statements below regarding global poverty is FALSE?



Developed countries have a higher level of poverty than developing countries.



Life expectancy, birth and death rates also provide a sense of the poverty level in a country.



The increasing global population has also increased poverty.



GDP does not accurately portray a country's standard of living.

Global Indicators of Standard of Living

Which statement below regarding sustainable economic growth is FALSE?



When equilibrium is to the right of the LRAS, that is a sustainable level of production.



Producing or consuming more does not always equate to long term economic growth.



A recession is a sustainable level of production.



In a recession, public policy could help an economy return to full employment.

Sustainable Economic Growth

When is GDP roughly the same as GNP?



For countries that have a higher growth trajectory than others



For countries that rely on production owned by nationals located overseas that is not offset by foreign investment



For countries where nationals’ offshore production is countered by domestic production by foreigners



For countries with a large amount of foreign direct investment and return of profits to country of origin

International Comparisons

Which statement below regarding Corporate Social Responsibility (CSR) is true?



CSR is an emerging area of study that many people still do not know about.



CSR refers to practices that are self-regulating and include philanthropy and volunteer work.



Critics claim that CSR can damage brand image.



CSR includes lowering prices to make goods more affordable to consumers.

Corporate Social Responsibility

Which of the statements below is true regarding ONLY fiscal policy?



It causes AD to shift to the right.



It uses government expenditures to create demand for goods and services.



It can be taken in an attempt to alter AD.



It increases the availability of money.

Monetary and Fiscal Policy

Private loan seekers getting crowded out of the loan market by the government is a(n) __________.



advantage of fiscal policy



criticism of fiscal policy



criticism of monetary policy



advantage of monetary policy

Pros and Cons of Monetary and Fiscal Policy

In which of the following ways does GDP play a role in the analysis of labor force participation rates by gender?



It indicates the birth rate, standard of living and quality of life in a country.



It indirectly accounts for educational attainment and labor force participation.



It indicates the access and availability of jobs relative to individuals in the population looking for a position.



It explains the differences between developed and underdeveloped countries.

Labor Force Participation Rates by Gender

Which of the following is NOT a sustainable source of growth?



Factors that shift the SRAS curve but not the LRAS curve



Invention of new forms of technology



Factors that shift the LRAS curve to the right



Increase in population, leading to more people available in the work force

Sustainable Economic Growth

Which of the following corresponds with the trough in the graph shown above?



None of the other answer choices is correct.

Business Cycles, Aggregate Demand, and Aggregate Supply

Which of the following is NOT an event that occurred when the Chinese yuan was pegged to the U.S. dollar?



The effect on Chinese GDP was negative, and the effect on U.S. GDP was positive.



The Chinese funded their exchanges by printing more money.



Chinese exports to the United States increased.



Americans demanded more yuan than the Chinese demanded dollars for exchanges.

International Trade and Aggregate Demand

GDP would be a poor indication of how well a country is doing economically for which of the scenarios below?



For a country that has offshore production that is offset by onshore production by foreign nationals



For a country that is producing significantly in other nations, so there is repatriation of profits outside its borders.



For a country that has little or no offshore production



For a country that has an equal amount of onshore and offshore production

International Comparisons

Which of the following would be true of policies taken during times of BOTH high and low unemployment?



The multiplier effect will magnify the influence of policies.



Reducing the money supply will reduce inflation.



Cutting taxes will cause an increase in GDP.



Increasing government spending will stimulate the economy.

Monetary and Fiscal Policy

Which statement below regarding economic indicators is true?



Economic indicators are inherently macroeconomic.



Economic indicators provide a view of the economy over an extended period of time.



It is common practice to only look at one indicator when analyzing the macroeconomy.



Trends, patterns or situations that assist in forecasting the economy are considered lagging indicators.

Understanding Indicators

Which statement below is true regarding sustainable economic growth?



It is not possible to produce at a level of production that is sustainable.



It means that we will be able to maintain our level of production only for a short time.



The level of production during a recession is not sustainable.



Technological developments can increase the level of sustainable production.

Sustainable Economic Growth

Some economists support the use of trade barriers when unemployment is high because of which of the following?



Domestic businesses have an incentive to produce efficiently.



Comparative advantage no longer applies.



Trade barriers have a positive effect on an international level.



Trade barriers serve special interests.

Analysis Trade Barriers

An increase in which of the following will cause a rightward shift of AD?



Float



Exports



Peg



Imports

International Trade and Aggregate Demand

When there is a decrease in the poverty rate, which of the following would also decrease?



Standard of living



Literacy rate



Population growth



Life expectancy

Global Indicators of Standard of Living

A firm produces goods at a cost of $50 each. The production process creates $25 of pollution for every good made.

Which of the following terms corresponds to the statement above?



Marginal social benefit



Marginal social cost



Economic justice



Positive externality

International Regulatory Environment

Select the statement below that is FALSE regarding labor force participation by gender.



The employment of women in living wage occupations leads to lower birth rates.



Labor force participation rates are not a good indicator of a country's economic health.



GDP indirectly accounts for labor force participation.



The employment of women in living wage occupations raises the standard of living for families.

Labor Force Participation Rates by Gender

Which of the following statements about the graph shown here is FALSE?



The United States can obtain rice at a lower opportunity cost if it trades corn with China than if it tried to grow rice.



The United States has the comparative advantage in growing corn.



If China trades rice for corn with the U.S., it will be the only country to benefit from the trade.



China has the absolute advantage in growing rice.

Rationale: Comparative Advantage

Select the statement below that is true of only CPI.



Divided up into crude, intermediate and finished goods



Provides a way to measure inflation



Published by the Bureau of Labor Statistics



Captures the price variation between consumer goods, with goods held constant

PPI/CPI/Deflator

Which of the following is NOT an effect of our country running a trade deficit?



Foreigners investing in our country to offset the deficit



Our capital account running a surplus



A deficit in our current account



An appreciation of our currency due to the trade deficit

Role of International Trade

Which of the following has NOT influenced global poverty rates?



Differential access to health care



Increasing population



Income polarity



Gini coefficient

Global Indicators of Standard of Living

GDP is useful in evaluating which of the following?



The production of firms that are owned by domestic nationals but located overseas



Increases in domestic consumption



The quality of life or the well-being of a population



An economy of a country producing a significant amount abroad

Which statement below about GDP and GNP is true?



Foreign investment can benefit GDP.



GDP is always a good measure of the economic well-being of a country.



GNP is used as a measure for quality of life variations between countries.



GNP measures the amount of goods and services produced only within a country's borders.

Which statement below regarding monetary and fiscal policy is FALSE?



The situation where unemployment is high and inflation is high is stagflation.



The inverse relationship between inflation and unemployment is known as the Phillips Curve.



Expansionary policy causes AD to shift to the left.



If AD increases too much, prices will increase and AD will return to equilibrium.

Which of the following is FALSE concerning using GDP to compare countries?



GDP cannot measure gains to all economic classes.



GDP cannot measure consumption-led growth well.



GDP cannot adequately measure leisure time.



GDP cannot measure non-market activities.

Which of the following is a clear example of sustainable economic growth?



A machine is developed that can harvest fruits and vegetables at double the speed.



Hydroponic technology makes it possible to grow more fruits and vegetables on a smaller piece of land.



An energy company develops new drilling technology that makes it possible to access petroleum even deeper than what is currently possible.



A lumber company invents a new machine that can harvest trees even faster than before.

Because of its climate, Brazil has the comparative advantage in coffee production, while the United States has the comparative advantage in wheat production.

This would make which of the following statements about comparative advantage FALSE?



Both countries should trade based on comparative advantage.



Brazil gives up more wheat than the United States when it produces coffee.



If workers in Brazil produce wheat, they will have to give up a significant amount of coffee production.



The United States can obtain coffee at a lower opportunity cost than if it produced it itself.

Determine which statement below regarding economic indicators is FALSE.



CPI measures inflation from the perspective of a consumer.



Retail sales measure the current outlook for the economy.



Consumer confidence can be volatile and inconsistent over time.



Building permits are an example of leading indicators.

Which description below corresponds to the United Nations Intergovernmental Panel on Climate Change?



A nonprofit organization that employs a panel of leading economists to conduct cost/benefit analysis on policies intended to address global problems



A governing body that includes U.N. members who signed the Kyoto Protocol in 1997



An organization devoted to taking regulatory action to reduce the negative effect of externalities produced by businesses



A global organization comprised of 2,000 scientists and researchers that is focused on the impact of climate change

Which statement below is true regarding the increased participation of women in the workplace?



Women tend to work fewer hours than men do.



Most of the countries worldwide meet the new international standard for minimum duration of maternity leave.



Gender wage gaps have been almost completely eliminated.



It is accompanied by lower birth rates, which means a higher standard of living for the next generation.

Which of the following describes the Producer Price Index?



A strong indicator of economic growth but not wealth distribution



What the Conference Board uses to assess economic growth



An evaluation of crude, intermediate and finished goods



A popular economic indicator despite its statistical issues

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Status NEW Posted 07 May 2020 05:05 AM My Price 20.00

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