Module 42 Misc. Flashcards
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.
____ are government investments funded by foreign currency reserves that are managed separately from official currency reserves and invested for profit.
Sovereign Wealth Funds (SWFs)
________ is all income received by individuals whether earned or unearned and is computed before any deductions for personal income taxes.
Personal Income
_______ includes all income by American-used resources whether used/invested at home or abroad.
National Income
A city ordinance that freezes rent prices may cause:
Demand for rental space to exceed Supply
A(n) ____ competitive firm has a large number of small competitors
Monopolistic
A(n) ____ firm must deal with the issue of interdependence between the small number of large firms in the industry.
Oligopolistic
The dominant reason why countries devalue their currencies is to:
improve the balance of trade.
One of the key characteristics of emerging market economies include ____ (low/high) debt-to-GDP ratios
Low
One of the key characteristics of emerging market economies include significant ____ (increase/decrease) in trade among and between emerging market economies
Increase
One of the key characteristics of emerging market economies include ___ (low/high) cost labor
Low
One of the key characteristics of emerging market economies include ___ (low/high) savings rates
High
One of the key characteristics of emerging market economies include ____ (large/small) currency reserves
Large
One of the key characteristics of emerging market economies include ____ (low/high) investment in infrastructure
High
One of the key characteristics of emerging market economies include rapid growth in the number of ______ (low, middle, high) class consumers
Middle
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.
_________ 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
The Real per Capita Gross Domestic Product measure is used as an estimate of ____
of changes in well-being in a society over time
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
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
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
T/F
The Federal Reserve may sell government securities to control the supply of money
TRUE
T/F
The Federal Reserve may change the reserve ratio to control the supply of money
True
T/F
The Federal Reserve may raise or lower the discount rate to control the supply of money
TRUE
