1. GDP measures underestimate the value of output produced by an economy because they include services not transferred through markets? T or F
2. Real GDP measures the value of goods and services using current-year prices? T or F
3. Investments are actions that incur costs today but provide expected benefits in the future. T or F
4. Banks prefer to make loans than keep reserves because they earn interest on loans but not reserves. T or F
5. When one individual writes a check to another individual, the money supply will NOT be changed? T or F
6. The exchange rate between currencies of different countries is controlled primarily by supply and demand in currency markets. Tor F
7. If supply of a product increases and demand for the product decreases, equilibrium price will definitely change. T or F
8. Markets exist to facilitate exchange between people. T or F
9. When product prices increase faster than nominal wages increases, the real value of wages decreases. T or F
10. Excesses supply in an unregulated market will cause the price of a product to fall. T or F
11. Two goods are substitutes, if an increase in the price of one good leads to an increase in demand for the other. T or F
12. An increase in demand will cause the equilibrium price and quantity to rise, ceteris paribus .T or F
13. An increase in wages will shift the supply curve up and to the left. T or F
14. If the quantity supplied of a product is greater than the quantity demanded for a product, there is pressure in the market to push the price upward. T or F
15. According to the principle of diminishing returns, an additional worker decreases total output. T or F