What is the GDP price index?
What will be an ideal response?
The GDP price index compares the price (or cost) of goods and services that make up GDP in a specific year to the price of the same “market basket” of goods in a reference year. The GDP is a much broader measure that includes consumer goods and services, capital goods, goods and services purchased by government, and goods and services entering world trade. With the GDP index the weights or relative purchases of goods and services are adjusted continuously and are not fixed as they are for the CPI.
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Unlike Germany, Japan has
A) a suppressed corporate debt market. B) laws against banks holding corporate stock. C) a large stock market. D) close ties between a firm and a single bank.
The opportunity cost of something is what you give up to get it
a. True b. False Indicate whether the statement is true or false
Firm managers should use inputs at levels where the:
A. Value marginal product of labor equals wage. B. Marginal benefit equals marginal cost and value marginal product of labor equals wage. C. Marginal benefit equals marginal cost. D. Price equals marginal product.
The market system's answer to the fundamental question "What will be produced?" is essentially:
A. "Goods and services that are profitable." B. "Low-cost goods and services." C. "Goods and services that can be produced using large amounts of capital." D. "Goods and services that possess lasting value."