Micro-Economics Final Self Quiz (18, 19, 21)

True/False: Human capital value is a function of lifetime earnings.

True/False: An economist can reduce all characteristics of a human being to monetary terms.

True/False: Institutions of higher education provide both consumer and producer services.

True/False: Men, land, capital equipment embody a potential flow of productive services over their employment lifetime.

True/False: Although a person sells only his current services, each person does represent human wealth or capital.

True/False: Generally the economic ability to migrate is greater for the less educated.

True/False: Income paid to females are consistently lower than incomes paid to males for comparable work.

True/False: Inflation can create a false impression that income inequality is being reduced.

True/False: Absolute equality in the distribution of income can seriously reduce incentive.

True/False: In general, economic deprivation is retreating from the American scene.

True/False: Minority incomes are about equal to those for the general population.

True/False: The median income for urban dwellers is more than for farmers.

True/False: Income is all a matter of skill, ability, and determination.

True/False: The institution of private property is an important factor contributing to the disparity of incomes.

True/False: Unemployment is generally considered a symptom rather than a cause of economic insecurity.

True/False: A relatively low income for the youngest members of the labor force is to be expected.

True/False: Unemployment compensation is uniform throughout the United States.

True/False: The impact of taxes and in-kind transfers is to make the distribution of income more unequal.

True/False: College graduates typically earn significantly more income than those with less education and the disparity tends to widen into middle age.

True/False: In every age group, average income in the US increases with education.

True/False: In determining the poverty level, the Census Bureau counts cash, but not in-kind transfers, thereby understating the actual amount of antipoverty transfers made.

True/False: Eligibility for income assistance benefits requires a prior financial contribution from the individual covered; eligibility for social insurance programs does not.

True/False: Since most welfare programs are administered by the federal government, there is uniformity in both eligibility and the dollar value of benefits in a state by state comparison.

True/False: One reason the US government is sensitive to demands by the elderly is that the elderly have higher voter participation rates than members of the other age groups.

True/False: Children of female heads of households are five times more likely to live in poverty than other children.

True/False: Both employers and employees contribute to old-age, survivors, disability, and health insurance.

True/False: The amount of real income from Social Security payments increases in periods of rising prices.

True/False: Social Security benefits help to maintain demand and consumption and operates as built-in stabilizers.

True/False: The increase in benefits stemming from the Social Security Act has been paid from increases in both the percentage tax rate on earnings and a rise in the ceiling on earnings subject to the Social Security tax.

True/False: Negative income tax payments are usually proposed as a means of providing a program of national health insurance.

True/False: The rate of population growth has a major impact on the nation's economy.

True/False: The pay scales of women are generally comparable to the pay scales of men.

True/False: The United States cannot benefit from international trade because it has the most efficient economy in the world.

True/False: Assume the US has the most efficient agricultural sector in the world. According to the principle of comparative advantage, then, the US will export agricultural products.

True/False: The US should specialize in the production of those goods in which it has a comparative advantage, even if that means importing some goods in which it has an absolute advantage.

True/False: The basis for trade at any level of economic activity lies primarily in the variations in quantity and quality of productive factors.

True/False: No owner of any productive factor ever gains from the imposition of a tariff.

True/False: The level of wages in a country is directly related to the level of productivity of workers in that country.

True/False: The short-run effects of tariff reduction on an import can be harmful to domestic producers of the product.

True/False: The US foreign trade policy can be evaluated as an element in this country's foreign policy, as well as in terms of economic criteria.

True/False: A tariff may be used to raise revenue or to protect domestic industries.

True/False: A protective tariff may be justifiably used in the interest of national security.

True/False: Exchange restrictions constitutes an indirect method of limiting tariffs.

True/False: Since World War II, the trend has been for nations to impose higher tariffs.

True/False: In the long run, the greatest advantage in international trade for all nations is to be found when comparative costs are free to operate.

True/False: The General Agreement of Tariffs and Trade compels signatory nations to eliminate or reduce all trade restrictions.

True/False: An embargo implies the sporadic unloading of surpluses at low prices by foreign competitor.

True/False: The purpose of a tariff is to increase the cost of particular commodities to the importer, whether he is a merchant or a consumer of the goods.

True/False: The Export-Import Bank is an international bank supported by funds from various nations.

True/False: Exports pay for imports and vice versa.

True/False: A deficit occurs in a nation's balance of payments account when its exports exceed its imports.

True/False: The United States has carefully avoided becoming involved in multilateral tariff agreements.

True/False: A nation might have a favorable balance of trade and still have a deficit balance of payments.

True/False: The World Bank makes loans primarily for development purposes.

True/False: Maintaining military troops overseas aggravates our international balance of payments.

True/False: Funds were channeled by the US into Europe after World Wat II for reconstruction purposes primarily through the Marshall Plan.

True/False: International trade increases world efficiency for the same reason that domestic trade increases national economic security.

True/False: International trade equalizes the opportunity cost of producing any good around the world.

True/False: The US exports more raw materials than finished products.

True/False: If the US has an absolute advantage in producing computer components, it should export them worldwide.

True/False: US consumers would be better off if they bought only US-produced goods.

True/False: If a country has an absolute advantage in the production of every good, it cannot benefit from trade with other countries.

True/False: Whenever the opportunity costs of goods are significantly different in different countries, there are gains from specialization and trade.

True/False: Domestic producers of goods that compete with imports benefit from protectionism in the short run.

True/False: When a tariff increases, everybody loses except the government imposing the tariff.

True/False: Ad valorem tariffs on imports are based on a percentage of an import's value; specific tariffs are based on a lump sum per physical unit imported.

True/False: Dumping refers to selling commodity abroad at a price that is below its cost of production or below the price charged in the domestic market.

True/False: International trade between countries typically produces a winner and a loser, and generally, it is the economically more advanced country that gains at the expense of the less developed nation.

True/False: The most-favored-nation clause established by the GATT allows two nations to make special deals between themselves that will not affect other nations.

True/False: The International Monetary Fund makes loans to nations primarily to correct short-term balance-of-payments deficits.

True/False: Market exchange rates and official exchange rates seldom differ from one another.

True/False: Under multinational trade, it is not necessary that exports and imports between any two nations be equal.

True/False: If a nation imports more than it exports, it has an unfavorable balance of trade.

True/False: The American balance of payments has been mostly characterized by deficits since World War II.

True/False: Only countries with favorable balances of trade can draw upon the international reserves of the International Monetary Fund.

True/False: Economic Development may require a change in some of the social institutions of a nation.

True/False: The interest of the US in undeveloped nations is solely economic.

True/False: Practically all income in underdeveloped nations is used to purchase consumer goods, which leaves little, if anything, for savings.

True/False: One of the major problems of underdeveloped nations is that they do not have enough people engaged in agriculture.

True/False: Populations in underdeveloped areas of the world are characterized by high fertility and high mortality rates.

True/False: The construction of railroads, highways, dams, bridges, airports, and public utilities contributes little to economic development.

True/False: Social capital is an important ingredient of economic development.

True/False: In its early economic development, America was aided greatly by a flow of capital from Europe.

True/False: If the labor supply is too large relative to the amount of available capital, population growth retards development.

True/False: Unconsumed current output is the domestic source of expansion in the economy's stock of physical capital equipment.

True/False: Political stability is a conductive factor in economic development.

True/False: The protestant Reformation had no effect on the rise of capitalism and the economic development of the Western World.

True/False: The takeoff is essentially a burst of economic growth that carries an economy into a path of normal and semiautomatic further development.

True/False: Much of the world's population lives under conditions of extreme poverty measured by contemporary standards.

True/False: With few exceptions, countries having the lowest per capita incomes are located outside the North American continent and western Europe.

True/False: Geographic determinism holds that temporate climates are most conducive to economic development.

True/False: Most foreign economic aid granted by the United States since 1949 has been directed to Latin America.

True/False: In recent years, there has been a shift of emphasis from unilateral development assistance to multilateral development assistance.

True/False: The attainment of substantial growth rates guarantees that the majority of citizens will share appreciably in the national gains.

True/False: Economic assistance to underdeveloped countries has been increasing but less than the levels proposed by the United Nations or the World Bank.

True/False: Developing countries typically have low real GDP per capita, high birth rates, low education, and low savings rates.

True/False: Most of the poorest countries in the world, such as those in Sub-Saharan Africa, suffer harsh economic conditions that their populations tend to shrink.

True/False: Throughout the world, poverty is greater among women than among men.

True/False: One reason investment is low in less-educated countries is that the wealthy individuals in those countries prefer to invest in more stable economies.

True/False: A less-developed country should probably tolerate income inequality temporarily since rich people prefer to save and invest in their own countries.

True/False: The unemployment rates in developing economies tend to be lower than in advanced economies since developing economies employ more labor-intensive production processes.

True/False: When countries rely on government monopolies, their economies grow faster.

True/False: The money sent home by workers who emigrate from a developing country can benefit the country as a source of foreign exchange, but it can hurt the country if the most skilled and educated professionals are leaving.

True/False: Privatization is the process of turning public enterprises into private enterprises.