Comparing nominal GDP of 2012 to nominal GDP of twenty years ago
A) is an inaccurate measure of the change in total production.
B) has no economic meaning.
C) will be an accurate measure of the change in total production.
D) determines the extent to which the cost of living changed.
E) cannot be done because the two GDP measures use different prices.
A
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A central bank ________ of domestic currency and corresponding ________ of foreign assets in the foreign exchange market leads to an equal increase in its international reserves and the monetary base, everything else held constant
A) sale; purchase B) sale; sale C) purchase; sale D) purchase; purchase
A market structure in which there are many firms selling products that are similar but not identical is known as
a. oligopoly. b. monopoly. c. monopolistic competition. d. perfect competition.
If the owner of an ice-cream stand told a student looking for summer work that he would not hire him even if he worked for nothing, we can infer that
A. the marginal product of the labor is zero or less. B. the owner is producing at the lowest cost. C. the marginal product of labor is rising. D. the average product of labor is rising.
Collusive agreements between two firms are most likely to be honored when the game:
A. is a one-time game with the opportunity for a prisoner's dilemma. B. has a Nash equilibrium that differs from the outcome that maximizes the payoffs to the two firms. C. is a zero-sum game. D. is repeated and both firms offer credible threats if the other violates the agreement.