Ch 02 Economic Activity

Economic growth refers to a steady increase in the production of goods and services in an economic system.

• True

• False

One component of gross domestic product is the value of a country’s exports plus the value of the imports into the country.

• True

• False

The more goods and services produced, the healthier an economy is considered to be.

• True

• False

Mikayla is a 14-year-old student. She would not be considered part of the labor force in the United States.

• True

• False

In the United States, all people over the age of 21 who do not have a full-time, paying job are considered "unemployed."

• True

• False

An ability to produce more goods and services in less time makes it possible to reduce the number of hours in a workweek.

• True

• False

Stanley receives a monthly Social Security check from the U.S. government. This would not be counted when measuring Stanley’s personal income.

• True

• False

Business cycles are the recurring ups and downs of gross domestic product.

• True

• False

During periods of deflation, prices drop so demand increases greatly.

• True

• False

The money for capital projects comes from three main sources: stock investments, bonds, and personal savings.

• True

• False