Flashcards in Module 42 Misc. Deck (41)
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1
What is the effect when a foreign competitor's currency becomes weaker compared to the U.S. dollar?
The foreign company will have an advantage in the U.S. market.
2
____ are government investments funded by foreign currency reserves that are managed separately from official currency reserves and invested for profit.
Sovereign Wealth Funds (SWFs)
3
________ is all income received by individuals whether earned or unearned and is computed before any deductions for personal income taxes.
Personal Income
4
_______ includes all income by American-used resources whether used/invested at home or abroad.
National Income
5
A city ordinance that freezes rent prices may cause:
Demand for rental space to exceed Supply
6
A(n) ____ competitive firm has a large number of small competitors
Monopolistic
7
A(n) ____ firm must deal with the issue of interdependence between the small number of large firms in the industry.
Oligopolistic
8
The dominant reason why countries devalue their currencies is to:
improve the balance of trade.
9
One of the key characteristics of emerging market economies include ____ (low/high) debt-to-GDP ratios
Low
10
One of the key characteristics of emerging market economies include significant ____ (increase/decrease) in trade among and between emerging market economies
Increase
11
One of the key characteristics of emerging market economies include ___ (low/high) cost labor
Low
12
One of the key characteristics of emerging market economies include ___ (low/high) savings rates
High
13
One of the key characteristics of emerging market economies include ____ (large/small) currency reserves
Large
14
One of the key characteristics of emerging market economies include ____ (low/high) investment in infrastructure
High
15
One of the key characteristics of emerging market economies include rapid growth in the number of ______ (low, middle, high) class consumers
Middle
16
A key rationale or cause for the changing pattern of investment in agriculture by sovereign wealth funds would be:
to ensure food security in the event that crop shortages would cause export bans that might curtail their ability to import crops.
17
_________ is gross domestic product for a particular year adjusted for inflation compared to a base year using a price index. This adjusted number is then divided by population.
Real per Capita Gross Domestic Product
18
The Real per Capita Gross Domestic Product measure is used as an estimate of ____
of changes in well-being in a society over time
19
T/F
The Real per Capita Gross Domestic Product measure is not one of the variables one would traditionally see in national income calculations.
TRUE
20
Economic profit is generally _____ (lower/higher) than accounting profit due to the fact that ____ are included in the calculation of economic profits.
Lower
Implicit Costs
21
T/F
The Federal Reserve Bank prints money when the level of M1 appears low
FALSE
The actual printing of currency is controlled by the US Treasury
22
T/F
The Federal Reserve may sell government securities to control the supply of money
TRUE
23
T/F
The Federal Reserve may change the reserve ratio to control the supply of money
True
24
T/F
The Federal Reserve may raise or lower the discount rate to control the supply of money
TRUE
25
How is the trough of a business cycle generally characterized?
Unused productive capacity and an unwillingness to risk new investments
26
T/F
The trough of a business cycle is characterized by a specific sort of behavior with respect to costs and purchasing power
FALSE
The Trough of a business cycle is NOT typically characterized by these things
27
What indicator does the federal government use to measure inflation?
Consumer Price Index
28
What is the primary measure of the level of economic activity in the US?
GDP
29
Bank reserves would be ____ (increased/decreased) by a sale of government securities by the Federal Reserve
Decreased
30
