Which of the following is a problem when comparing GDPs per capita between nations?
A. GDP per capita only measures income distribution.
B. Fluctuations in exchange rates affect differences in GDP per capita.
C. GDP per capita is subject to greater measurement errors for IACs compared to LDCs.
D. GDP per capita is likely overstated in LDCs due to families producing goods and services outside of the pricing system.
Answer: B
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Let the production function be q=ALaKb. The function exhibits constant returns to scale if
A) a + b = 1. B) a + b > 1. C) a + b < 1. D) Cannot be determined with the information given.
Refer to the tables below. The domestic opportunity cost of producing more of product:
Two nations, ECON and OMICS, each produce goods A and B. The table gives points on each nation's production possibilities curve.
A. A is the same for both nations
B. B is the same for both nations
C. A is lower in OMICS
D. B is lower in OMICS
Which of the following indicates that the U.S. economy has become more stable since 1950?
A) less severe fluctuations in real GDP B) longer recessions C) shorter expansions D) All of the above indicate that the U.S. economy has become more stable since 1950.
How does a monopoly transfer consumer surplus to itself?
What will be an ideal response?