What measure of GDP shows the value of goods and services produced if we valued these good and services at the prices that prevailed in some specific year in the past?
real GDP
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Fill in the blank: National income accountants who measure GDP try to avoid the ________ problem by only measuring the market value of all final goods and services produced within a country
A) double trouble B) double indemnity C) double counting D) double jeopardy E) double-your-pleasure
Commodity money is money that:
a. has no value as a commodity. b. is not backed by gold or silver and is not a legal tender. c. may go out of circulation with an increase in its intrinsic value. d. always has a face value greater than the intrinsic value. e. is solely used in barter exchanges.
Suppose that electricity producers create a negative externality equal to $5 per unit. Further suppose that the government imposes a $5 per-unit tax on the producers. What is the relationship between the after-tax equilibrium quantity and the socially optimal quantity of electricity to be produced?
a. They are equal. b. The after-tax equilibrium quantity is greater than the socially optimal quantity. c. The after-tax equilibrium quantity is less than the socially optimal quantity. d. There is not enough information to answer the question.
In general, economists assume that firms
A. maximize economic profit. B. maximize sales. C. maximize revenue. D. maximize accounting profit.