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Which one of the following statements is false?

Which one of the following statements is false?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A= C+1 45 Y. Yo Y1 Which one of the following statements is false? Y1 represents the equilibrium level of income. The curve labelled A = C +1 shows the total of consumption and investment spending. The curve labelled C shows the total of autonomous and induced consumption spending. The point labelled D shows where savings equal investment. A. C. 2. In macroeconomic theory, total or aggregate spending is denoted by A and total or aggregate production of income by Y. Which one of the following statements is incorrect? When A is greater than Y, there is disequilibrium and Y will tend to increase. When A is equal to Y, there is equilibrium and Y will remain unchanged. When A is less than Y, there is disequilibrium and Y will decrease. When A is greater than Y, there is disequilibrum and A will decrease A. 10
Transcribed Image Text:A= C+1 45 Y. Yo Y1 Which one of the following statements is false? Y1 represents the equilibrium level of income. The curve labelled A = C +1 shows the total of consumption and investment spending. The curve labelled C shows the total of autonomous and induced consumption spending. The point labelled D shows where savings equal investment. A. C. 2. In macroeconomic theory, total or aggregate spending is denoted by A and total or aggregate production of income by Y. Which one of the following statements is incorrect? When A is greater than Y, there is disequilibrium and Y will tend to increase. When A is equal to Y, there is equilibrium and Y will remain unchanged. When A is less than Y, there is disequilibrium and Y will decrease. When A is greater than Y, there is disequilibrum and A will decrease A. 10
15. Consider the case of two countries, Mauritius and South Africa, both producing rum and cloth. If all resources are fully and efficiently employed, one worker in Mauritius can produce 270 units of rum or 30m of cloth per week, while one worker in South Africa can produce 320 units of rum or 40m of cloth per week. Rum Cloth Mauritius 270 30 South Africa 320 40 Based on this information: A South Africa has an absolute advantage in the production of rum only. Mauritius should import rum from South Africa. Mauritius has a comparative advantage in the production of cloth. South Africa should export cloth to Mauritius. 16. The macroeconomic view of a trade deficit implies that, other things equal, the imposition of a tariff will reduce South Africa's trade deficit Because exports will be promoted and imports cannot possibly change Because imports will be reduced and exports cannot possibly change Only if the tariff has no impact on South Africa's spending or income Only if the tariff leads to increased income in South Africa relative to its spending B (BCD
Transcribed Image Text:15. Consider the case of two countries, Mauritius and South Africa, both producing rum and cloth. If all resources are fully and efficiently employed, one worker in Mauritius can produce 270 units of rum or 30m of cloth per week, while one worker in South Africa can produce 320 units of rum or 40m of cloth per week. Rum Cloth Mauritius 270 30 South Africa 320 40 Based on this information: A South Africa has an absolute advantage in the production of rum only. Mauritius should import rum from South Africa. Mauritius has a comparative advantage in the production of cloth. South Africa should export cloth to Mauritius. 16. The macroeconomic view of a trade deficit implies that, other things equal, the imposition of a tariff will reduce South Africa's trade deficit Because exports will be promoted and imports cannot possibly change Because imports will be reduced and exports cannot possibly change Only if the tariff has no impact on South Africa's spending or income Only if the tariff leads to increased income in South Africa relative to its spending B (BCD
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