The table above has real and nominal GDP for two years for a foreign country
a. What does the GDP price index equal in 2010? What does the value of the GDP price index tell you about 2010?
b. What does the GDP price index equal in 2011?
a. The GDP price index equals (100 ) × (nominal GDP ÷ real GDP). In 2010, the GDP price index equals (100 ) × ($3,300 trillion ÷ $3,300 trillion) = 100. Because the GDP price index equals 100, we can determine that 2010 is a base year.
b. In 2011, the GDP price index equals (100 ) × ($4,200 ÷ $3,600 ) = 116.67.
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The figure above shows the marginal social cost curve of generating electricity and the marginal private cost curve. The difference between the marginal cost curve and the marginal social cost curve equals
A) marginal private cost. B) private cost. C) external cost. D) marginal external cost. E) Coasian cost.
A vacation home in Malibu is
a. not rival in consumption and excludable. b. rival in consumption and excludable. c. not rival in consumption and not excludable. d. rival in consumption and not excludable.
Generally, if a nation produces more consumer goods than capital goods
A. more of all goods may be produced in the future. B. about the same amount of capital goods may be produced in the future as are being produced today. C. less of all goods may be produced in the future. D. society will have to forego future consumption of capital goods.
Any transaction that involves exchanging one good for another without using money is considered a
A. liquidity transaction. B. barter transaction. C. black market exchange. D. deferred payment.