SOPHIA ECON102 Unit 4 Milestone Latest 2022 May

ECON102 Macroeconomics

Unit 4 Milestone

Which of the following is a clear example of sustainable economic growth?

An energy company develops new drilling technology that makes it possible to access petroleum even deeper than what is currently possible.

A machine is developed that can harvest fruits and vegetables at double the speed.

Hydroponic technology makes it possible to grow more fruits and vegetables on a smaller piece of land.

A lumber company invents a new machine that can harvest trees even faster than before.

2Which of the following is a socially responsible activity that could include corporate/employee matching contributions?

Environmental management

Corporate governance

Supply chain

Philanthropy

3Determine which statement below regarding economic indicators is FALSE.

Building permits are an example of leading indicators.

Retail sales measure the current outlook for the economy.

CPI measures inflation from the perspective of a consumer.

Consumer confidence can be volatile and inconsistent over time.

4Select the FALSE statement below regarding international environmental regulations.

Externalities accrue to the firm that produces the good in question.

The Copenhagen Consensus is an example of an organization that outlines costs and benefits of different ways to respond to climate change.

Firms over-produce products that impose costs on society.

At a macro level, externalities can lead to global changes.

5Increasing employment of women in living wage occupations is linked with which of the following?

Women working longer hours than men

Occupational segregation and gender wage gaps

The informal sector

A higher standard of living for families

6Some economists support the use of trade barriers when unemployment is high because of which of the following?

Domestic businesses have an incentive to produce efficiently.

Trade barriers serve special interests.

Comparative advantage no longer applies.

Trade barriers have a positive effect on an international level.

7Which of the following describes one of the unexpected benefits of China's economic policies?

The standard of living in the United States increased.

The GDP of the United States increased, and the GDP of China decreased.

U.S. exports to China increased.

The Chinese central bank printed extra currency to exchange with the United States.

8Which of the following are we NOT able to tell about a country's economic health by looking at labor force participation rates by gender?

Measure of income inequality

Level of gender equality

Standard of living

Access and availability of jobs

9If the US dollar strengthens relative to the euro, which of the following statements will be true?

Demand for U.S. products will increase.

Demand for U.S. goods will stay the same.

European demand for U.S. goods will decrease.

Consumers everywhere will find American products inexpensive.

10Select the equation below that corresponds to income that can be consumed, saved or paid as taxes.

Y=C+I+G+X

Y=C+S+T+M

X=M

X<M

11In which of the following circumstances would it be appropriate to use expansionary policy to increase GDP?

When the economy is in long run equilibrium

When the economy is in a recession

When resources are being used faster than they can be replaced

When the economy is operating beyond full employment

12Determine which statement below is true of ONLY contractionary policy.

This can help reduce unsustainable levels of production

Lowering interest rates are an example of this

Too much of this can lead only to inflation

This includes monetary and fiscal policy

13Which of the statements below regarding global poverty is FALSE?

The increasing global population has also increased poverty.

Developed countries have a higher level of poverty than developing countries.

Life expectancy, birth and death rates also provide a sense of the poverty level in a country.

GDP does not accurately portray a country's standard of living.

14Suppose Venezuela can produce petroleum at a lower opportunity cost because of its natural resources, and China can produce clothing at a low opportunity cost because of its population and level of industrial development.

Which statement below regarding comparative advantage is NOT true?

Venezuela can produce clothing at low opportunity cost.

Venezuela has a comparative advantage in petroleum production.

China has a comparative advantage in clothing production.

China can produce petroleum at high opportunity cost.

15Which of the following corresponds with the trough in the graph shown above?

None of the other answer choices is correct.

16Which of the following is one of the problems with using fiscal policy to reduce the severity of business cycles?

It is often implemented too late to be effective.

It takes too long for consumers to respond to fiscal policy.

Policies that are implemented could interfere with business investments of capital.

It should be based on rules that allow the money supply to grow at a consistent rate.

17When is GDP roughly the same as GNP?

For countries that rely on production owned by nationals located overseas that is not offset by foreign investment

For countries with a large amount of foreign direct investment and return of profits to country of origin

For countries that have a higher growth trajectory than others

For countries where nationals’ offshore production is countered by domestic production by foreigners

18Which statement below is true of ONLY fiscal policy?

Used to alter AD

A policy typically set by a banking authority

Uses government expenditures to create demand

Increases the availability of money

19Select the statement below that is true of only GNP.

This includes production by people outside of a country's borders.

This is not a true quality-of-life indicator, but does indicate consumption.

This does not measure domestic investment in foreign countries.

This is known as a lagging indicator.

20Select the statement below that is true of only CPI.

Captures the price variation between consumer goods, with goods held constant

Divided up into crude, intermediate and finished goods

Published by the Bureau of Labor Statistics

Provides a way to measure inflation

21When there is a decrease in the poverty rate, which of the following would also decrease?

Standard of living

Population growth

Literacy rate

Life expectancy