The addition of government to the circular-flow model illustrates that government
A. purchases goods in the product market.
B. provides services to businesses and households.
C. purchases resources in the resource market.
D. does all of these.
Answer: D
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Nominal GDP is the value of final goods and services
A) at the prices of that year. B) at the prices of the immediately previous year. C) at the prices of a base year. D) produced in foreign countries but consumed in the domestic country.
The poorest regions in the world, as measured by GDP per capita, are:
a. Latin America and the Caribbean. b. the Middle East and North Africa. c. Sub-Saharan Africa and South Asia. d. Australia and New Zealand.
The best explanation for why negative marginal product is reached at seven or more workers is that ______.
a. with seven or more workers, the shop makes more bagels than its customers want
b. six workers is the optimal staff size for a small business
c. Moe’s can only make effective use of six workers
d. Moe’s cannot make a profit with more than six workers
An agreement that gives one party the right to buy or sell from or to •- another party a specified quantity of currency at a specified price would be included in which of the following transactions?
a. an option b. a futures contract c. a forward contract d. a swap