Answer the following statement(s) true (T) or false (F)
1. Falling real GDP per capita can bring on unemployment, bankruptcies, and many
other human hardships.
2. With nonmarket transactions, no money is exchanged.
3. The underground economy is excluded from the GDP because it goes unreported to
the government.
4. If people start taking more three-day weekends, GDP and people’ s economic well-
being will necessarily drop.
5. The GDP often reflects important changes in the improvements in the quality of
goods.
1. TRUE
2. TRUE
3. TRUE
4. FALSE
5. FALSE
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The figure above shows the market for tires. The government has imposed a tax on tires, and the buyers pay ________ of the tax
A) $10 B) $20 C) $50 D) $60 E) $30
Goods that are nonrival and nonexcludable are called
A) external goods. B) public goods. C) private goods. D) free goods.
In the current international monetary system, what is the role for gold?
a. The system is a gold-exchange standard, based on a fixed value for a key currency. b. Gold backs each currency, and therefore, the system as a whole. c. It serves as the principal reserve asset. d. It has no role.
A person who is switching careers and is unemployed while looking for a better job is an example of
a. Cyclical Unemployment b. Frictional Unemployment c. Structural Unemployment d. Reciprocal Unemployment e. Transitional Employment