Answer the following statement(s) true (T) or false (F)
1. Investment refers to the purchase of consumer goods and services by households.
2. In each year since 1929, consumption has been less than half of total expenditures
for goods and services for the GDP.
3. Services is one of the three categories that consumption is divided into.
4. In economics, an investment involves trading money for stock certificates.
5. Net exports are a small proportion of GDP and are often negative for the United
States.
1. FALSE
2. FALSE
3. TRUE
4. FALSE
5. TRUE
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The third round of quantitative easing, announced in September 2012, was focused on purchases of:
A) short-term Treasury bills B) long-term Treasury notes C) long-term Treasury notes and sales of short-term Treasury bills D) mortgage-backed securities
If at optimum output of 1,000 units, the firm is incurring average variable cost per unit of $3, average fixed cost per unit of $1.50, and selling its output at $7 per unit, total profit is
a. $7,000. b. $2,500. c. $1,500. d. $250.
In comparison to most developed economies, developing countries:
A. offer about the same degree of currency convertibility. B. offer greater currency convertibility. C. offer more restricted currency convertibility. D. sometimes offer higher levels of currency convertibility and sometimes offer lower levels.
A significant decline in real GDP is called a
a. recession. b. depression. c. peak. d. trough.