Which of the following is NOT a reason that real GDP is a poor measure of a nation's economic welfare?
A) Real GDP omits measures of political freedom.
B) Real GDP does not take into account the value of people's leisure time.
C) Real GDP does not include the underground economy.
D) Real GDP overvalues household production.
D
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A characteristic of monopolistic competition is that each firm
A) faces perfectly elastic demand. B) faces a downward-sloping demand curve. C) has a perfectly elastic supply. D) has a perfectly inelastic supply.
Which of the following is an example of a surplus item on the balance of payments?
A) private gifts to foreign residents B) public gifts to foreign residents C) interest receipts from foreign residents D) purchases of gold from foreign residents
Which of the following is a difference between a binding and a not binding price floor?
a. A binding price floor causes a surplus in the market, while a not binding price floor causes a shortage in the market. b. A binding price floor causes a surplus in the market, while a not binding price floor has no impact on the market forces. c. A binding price floor causes a shortage in the market, while a not binding price floor has no impact on the market forces. d. A binding price floor causes a shortage in the market, while a not binding price floor causes a surplus in the market.
The law of diminishing returns applies to which of the following segments of the marginal product of labor curve?
a. The point where labor input is zero. b. The downward-sloping segment only. c. The entire curve. d. The upward sloping segment only.