Chat with AI
Economics: The Basics 1st Edition by Mike Mandel
Edition 1ISBN: 978-0071316026Economics: The Basics 1st Edition by Mike Mandel
Edition 1ISBN: 978-0071316026 Exercise 2
Say whether each of the following statements is true or false.
a) Market transactions are the main way of organizing economic activity around the world.
b) Technological change moves at an equal pace in all parts of the economy.
c) Globalization includes flows of people as well as trade in goods and services.
d) One benefit of globalization is lower prices.
e) Financial markets hardly ever experience violent swings.
f) The United States is an example of a centrally planned economy.
g) Economic competition is the most consistent force for growth and progress.
h) Gross domestic product is one of the important measures of the economy.
a) Market transactions are the main way of organizing economic activity around the world.
b) Technological change moves at an equal pace in all parts of the economy.
c) Globalization includes flows of people as well as trade in goods and services.
d) One benefit of globalization is lower prices.
e) Financial markets hardly ever experience violent swings.
f) The United States is an example of a centrally planned economy.
g) Economic competition is the most consistent force for growth and progress.
h) Gross domestic product is one of the important measures of the economy.
Explanation
Verified
Verified
a)The Market transaction is the activity that produces and exchange goods and services that other people are willing to pay for. In this way, the market transactions organize the economic activity around the world.
So, the given statement is True.
b)The Technological change is not equal in all the part of the economy. It moves at a faster speed in one industry of economy and at some other pace in other. Though there has been evolution in technology in recent times, still the pace of change of technology has been slower.
So, the given statement is False.
c)Globalization is the process of exchange of goods, services, ideas, and people among countries. So, it can be said that there is flow of people as well trade in goods and services.
So, the given statement is True.
d)The biggest benefit of the foreign trade is access to cheaper goods and services. For example; due to increase in imports, the prices of the clothing has fallen by more than 10 percent.
So, the statement is True.
e)Financial markets have different experiences on different people. Mostly, they are judged to experience violent swings. In long run, the stock market always goes up and in short run there are wide swings in downward direction
So, the given statement is False.
f)Centrally planned economy is the economy where the economic activities are controlled by government. The United States is an example of mixed economy. In this economy the government has limited intervention in making production and consumption decisions.
So, the given statement is False.
g)History of economics suggested that if economic competition is conducted in fair set of rules, it is said to be the most consistent force for growth and progress.
So, the given statement is True.
h)It can be said that the more goods and services an economy produces, the better it would be doing. That is why the economists make sure that the total output of the economy keeps growing. The total output of the economy is also called gross domestic product of the economy.
So, the given statement is True.
So, the given statement is True.
b)The Technological change is not equal in all the part of the economy. It moves at a faster speed in one industry of economy and at some other pace in other. Though there has been evolution in technology in recent times, still the pace of change of technology has been slower.
So, the given statement is False.
c)Globalization is the process of exchange of goods, services, ideas, and people among countries. So, it can be said that there is flow of people as well trade in goods and services.
So, the given statement is True.
d)The biggest benefit of the foreign trade is access to cheaper goods and services. For example; due to increase in imports, the prices of the clothing has fallen by more than 10 percent.
So, the statement is True.
e)Financial markets have different experiences on different people. Mostly, they are judged to experience violent swings. In long run, the stock market always goes up and in short run there are wide swings in downward direction
So, the given statement is False.
f)Centrally planned economy is the economy where the economic activities are controlled by government. The United States is an example of mixed economy. In this economy the government has limited intervention in making production and consumption decisions.
So, the given statement is False.
g)History of economics suggested that if economic competition is conducted in fair set of rules, it is said to be the most consistent force for growth and progress.
So, the given statement is True.
h)It can be said that the more goods and services an economy produces, the better it would be doing. That is why the economists make sure that the total output of the economy keeps growing. The total output of the economy is also called gross domestic product of the economy.
So, the given statement is True.
Economics: The Basics 1st Edition by Mike Mandel
Why don’t you like this exercise?
Other Minimum 8 character and maximum 255 character
Character 255
