The GDP price index is different from other price indexes because ________.
A. it includes transactions from both the formal economy and the underground economy
B. it is based on a fixed market basket of goods
C. it is the broadest measure of prices in the economy
D. it includes both foreign produced goods and domestically produced goods
Answer: C
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Suppose that there is an increase in expected future disposable income and simultaneously an increase in the expected profitability of investment
As a result, the equilibrium real interest rate ________ and the equilibrium quantity of loanable funds ________. A) rises; decreases B) falls; might increase, decrease, or not change C) rises; might increase, decrease, or not change D) rises; increases E) falls; increases
Protecting intellectual property rights:
A. gives no incentive to innovate. B. encourages research and development. C. will increase total surplus for society. D. only benefits producers in society.
Labor resources include
a. only physical exertion b. only the resources used in the production of other resources c. only skilled labor d. both physical and mental exertion e. the expenditure of people's effort in producing goods, but not services
When a perfectly competitive firm sells additional units of output, ________, and when a monopolist sells additional units of output, ________.
A. marginal revenue stays the same; marginal revenue rises B. total revenue rises; total revenue falls C. total revenue does not change; total revenue rises D. total revenue always rises; total revenue could rise, fall, or remain unchanged