Explain why an economist would focus on real GDP rather than nominal GDP?

If voters have single-peaked preferences:

A. a majority of them prefer a policy other than the median policy. B. majority rule always leads to the selection of the median ideal policy. C. majority rule never leads to the selection of the median ideal policy. D. their net benefits from an activity decrease with the activity's level up to some point and then it increases.

People often choose to specialize and trade because:

A. it will allow them to enjoy more goods than they can create on their own. B. they can consume a bundle of goods on their production possibilities frontier. C. it always allows them to produce at a point beyond their own production possibilities frontier. D. they can take advantage of another nation’s poor choices.

Economic models

a. are people who act out the behavior of firms and households so that economists can study this behavior. b. are usually detailed replications of reality. c. incorporate simplifying assumptions that often contradict reality, but also help economists better understand reality. d. are useful to researchers but not to teachers because economic models omit many details of the real-world economy.

In determining wages, ability, effort, and chance

a. probably play no role whatsoever. b. play a role, but their importance is hard to gauge since ability, effort, and chance are hard to measure. c. play a role, and that role is fully captured in easy-to-measure factors such as human capital and age. d. play a role, and it is fully explained within the context of compensating differentials.