When your textbook says that it is misleading to say that the market economy produces an aggregate GDP-measured "economic pie," the authors have the following claim in mind:
A) Unlike a pie, income in the economy can't be divvied out independent of the exchange process.
B) The economy produces more than just pies.
C) The "pie" metaphor focuses solely on real GDP and excludes the more important measure of nominal GDP.
D) The production of pies create no income opportunities for market participants.
A
You might also like to view...
Consider a consumer who purchases two goods, X and Y. If the price of good Y falls, then the substitution effect by itself will
a. cause the consumer to buy more of good Y and less of good X. b. cause the consumer to buy more of good X and less of good Y. c. not affect the amount of goods X and Y that the consumer buys. d. result in an upward-sloping demand for good Y because of the substitution effect.
Research supports the claim that there are significant compliance costs associated with environmentally friendly production in countries with strong environmental laws, so that there are large incentives for firms to produce in countries with lax environmental laws.
Answer the following statement true (T) or false (F)
Marginal analysis__________ picks out _________ optimum as minimization of total cost.
Fill in the blank(s) with the appropriate word(s).
A straight line falls when moving rightward along it. Hence the slope of the line is
A) negative. B) positive. C) zero because it is a straight line. D) undefined. E) perhaps positive, negative, or zero, but without more information it is impossible to determine.