Question

TRUE OR FALSE

26. DIVIDENDS ARE ALWAYS PAID IN CASH.

27. TRADE SURPLUS= IMPORTS > EXPORTS, DOMESTIC JOBS INCREASE AND SONCUMER

PRICES GO UP.

28. THERE ARE 4 KEY ISSUES RELATED TO INVESTING. RETURN ON YOUR MONEY IS THE MOST

IMPORTANT.

29. TRADE DEFICIT= IMPORTS > EXPORTS ; DOMESTIC JOBS DECREASE; CONSUMER PRICES

GOES UP.

30. DUMPING INVOLVES RAISING PRICES.

31. FULL EMPLOYMENT = ZERO UNEMPLOYMENT.

32. OPEN SYSTEM, GLOBALIZATION, AND INTERNATIONAL MARKETING ARE DIFFERENT FROM

GLOBAL MANAGEMENT.

33. GDP MEASURES ALL PRODUCTS AND SERVICES MADE IN THE US, PUERTO RICO, GUAM,

BAHAMAS, THE US VIRGIN ISLANDS, AND PARTS OF SOUTHERN CANADA.

34. GDP = C + G + I + NX; THIS IS THE INCOME APPROACH AND THE EXPENDITURE APPROACH.

35. AN EXPENSIVE 2014 MERCEDES BENZ BOUGHT LAST YEAR IS COUNTED IN THE GDP.

36. GDP= C + I + G + NX; I REPRESENTS CORPORATE INVESTMENTS AND CONSUMERS BUYING

HOUSES FOR THEIR FIRST TIME.

37. PUBLIC TRANSFER PAYMENTS INCLUDES SOCIAL SECURITY, UNEMPLOYMENT

COMPENSATION, AND AUNT TINA GIVING HER FAVORITE NEPHEW $ 250,000.

38. NOMINAL GDP= GDP - INFLATION.

39. DISCRETIONARY INCOME= DISPOSAL INCOME + (EXPENSES – 0) x 1.0.

40. STAGFLATION IS THE WORST OF ATIONS AFTER HYPERINFLATION

41. MUTUAL FUNDS ARE A POOL OF MANY INVESTMENTS AND GIVES DIVERSIFICATION. THEY

ARE NOT SAFE.

42. THE UNEMPLOYED INCLUDES EVERYONE WITHOUT A JOB AND ARE LOOKING FOR A JOB

DURING THE LAST 4 WEEKS.

43. GNP > GDP, AND REAL GDP < NOMINAL GDP.

44. STRUCTURAL UNEMPLOYMENT IS WORST THAN FRICTIONAL UNEMPLOYMENT WHICH IS

EASIER TO FIX THAN CYCLICAL UNEMPLOYMENT.

45. FULL EMPLOYMENT GENERALLY IS WHEN THE UNEMPLOYMENT RATE HITS 4-5%.

46. FRICTIONAL UNEMPLOYMENT IS GENERALLY TOUGH TO FIX DURING A SEVERE RECESSION.

47. EFFICIENCY WAGES ARE VERY GOOD AND SAVE MONEY FOR EMPLOYERS IN THE LONG

TERM.

48. THE CPI IS AN EXCELLENT TOOL FOR DETERMINING INFLATION, DEFLATION, DISINFLATION,

AND STAGFLATION.

49. SHAREHOLDERS AND STOCKHOLDERS ARE BOTH EXACTLY THE SAME.

50. UNEMPLOYMENT RATES ARE THE LOWEST FOR ASIANS AND HISPANICS DUE TO MORE

SELF-EMPLOYMENT WITH THESE GROUPS OF PEOPLE.

Answer 1

26.

False

Dividend can be paid in cash, or in stocks or in any other forms of the assets as well.

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27.

False

Trade surplus is created when import is less than the export.

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28.

False

There are many important factors to be considered to ensure that return on investment is achieved with assurance.

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29.

True

Trade deficit takes place when import is greater than the exports. It leads to decrease in jobs as a result of decrease in AD.

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30.

False

Dumping caused price to decrease and destroy the market.

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31.

False

Full employment means natural rate of unemployment that is nearly 4 to 5% of unemployment.

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32.

True

These dimensions mentioned, are the part of global management.

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33.

False

GDP is specific to the economy and goods produced in southern part of Canada, cannot be the part of GDP in USA.

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34.

False

It is the expenditure approach that considers GDP = C + G + I + NX.

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35.

False

Products produced in the current year is counted in the GDP of current year.

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