True/False

1. GDP measures underestimate the value of output produced by an economy because they include services not transferred through markets? 
True or False 

2. Real GDP measures the value of goods and services using current-year prices?

True or False 

3. Investments are actions that incur costs today but provide expected benefits in the future. 

True or False 

4. Banks prefer to make loans than keep reserves because they earn interest on loans but not reserves. 

True or False 

5. When one individual writes a check to another individual, the money supply will NOT be changed? 

True or False 

6. The exchange rate between currencies of different countries is controlled primarily by supply and demand in currency markets. 

True or False 

7. If supply of a product increases and demand for the product decreases, equilibrium price will definitely change. 

True or False  

8. Markets exist to facilitate exchange between people. 

True or False 

9. When product prices increase faster than nominal wages increases, the real value of wages decreases. 

True or False 

10. Excesses supply in an unregulated market will cause the price of a product to fall. 

True or False 

11. Two goods are substitutes, if an increase in the price of one good leads to an increase in demand for the other. 

True or False 

12. An increase in demand will cause the equilibrium price and quantity to rise, ceteris paribus .

True or False 

13. An increase in wages will shift the supply curve up and to the left. 

True or False 

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.

True or False 

15. According to the principle of diminishing returns, an additional worker decreases total output.

True or False