Which of the following is NOT a reason why GDP is an imperfect measure of economic well-being? GDP only counts final goods and services GDP is a measure of production rather than consumption GDP doesn't indicate anything about the distribution of incomes in a nation GDP doesn't capture reductions in work hours over timeThe fact that lowincome people today own cell phones, which were once considered luxuries can be explained by: A decline in absolute poverty A decline in relative poverty An increase in absolute poverty An increase in relative poverty In recent decades, national income in the U.S. has increased faster than labor compensation. This suggests: Poverty has increased in the U5. Poverty has decreased in the US. Income inequality has decreased in the US. Income inequality has increased in the US. Which of the following statements is untrue? There is more than one way to measure economic inequality The Lorenz Curve is a graphical representation of the Gini coefficient Economic inequality is a measure of the average standard of living in a nation The "middle class" is measured in the third income quintileThe poverty rate: Shows the percentage of people with incomes below the poverty line Decreases during economic recessions Depends on the level of the social safety net (e.g. TAN F, Food Stamps, etc.) Which of the following is NOT a cause of economic inequality in the U.S.? Growth of single-parent families Declining globalization Improvements in production technology Fewer jobs for lower-skilled workersIf highlyskilled workers tend to marry other highly-skilled workers, while lowskilled workers tend to mary other lowskilled workers, then: Income inequality should decrease Average household incomes should rise Average household incomes should decrease Income inequality should increase The growth of the middle class in large developing countries like China and India have contributed to: Declining global economic inequality Lower standards of living in those countries Decreased US. exports Increasing economic inequality in the US. Which of the following programs provides incentives for people to become employed? The Earned Income Tax Credit Temporary Assistance to Needy Families (TAN F) Unemployment Compensation Supplemental Nutrition Assistance Program (SNAP or Food Stamps) The federal income tax system operates: To increase the amount of economic inequality To increase the federal budget decit To fund the safety net programs for the poor and near-poor by reducing the after-tax incomes of the rich and near rich \"The increase in interactions between people around the world that involves the sharing of goods, services, investments, ideas, and cultures\" describes Globalization Liberalization Democratization Absolute advantage refers to: A nation's ability to produce some good using fewer inputs than another nation A nation's ability to produce some good at a lower opportunity cost than another nation A nation's ability to produce some good with more allocati efficiency than another nationSuppose a country can produce wheat and rice. The country would specialize in the production of rice and import wheat if: The country has an absolute advantage in rice production The country has a comparative advantage in wheat production The country can produce more rice than it wants to consume The country can obtain more wheat by importing than it could produce itself while giving up the same amount of rice to produce or import wheat Which of the fol lowing statements is true? Comparative advantage determines a country's average standard of living Absolute advantage determines how much a country can increase its standard of living by trading internationally Absolute advantage determines a country's average standard of living, while comparative advantage determines how much the country can increase its standard of living by trading internationally Comparative advantage determines a country's average standard of living, while absolute advantage determines how much the country can increase its standard of living by trading internationally International trade based on comparative advantage: Requires a country to consume inside its production possibility frontier Allows a country to consume outside its production possibility frontier Is a zero-sum game; if one country gains, its trading partner loses Ricardo's theory argues against , which states that countries should maximize exports and minimize imports. Autarky Free trade Mercantilism Globalization One goal of outsourcing and offshoring is that: Firms can take advantage of lower-cost labor abroad Firms can provide jobs for foreign workers Firms can increase their market share nternational capital tends to go where: Labor costs are highest Financial markets are heavily regulated The rate of return is highest In recent decades, globalization has led to: Increased income for the poorest people in the U5. Increased jobs for middle-class Americans Increased income for the richest people internationally Which of these are benefits of free trade? It raises the average standard of living in a nation that trades internationally It raises the cost of living in a nation that trades internationally It increases the number of jobs in a nation that trades internationally It reduces tax revenues in a nation that trades internationally