Real GDP is:
A. calculated based on goods and services valued at constant prices.
B. calculated based on goods and services valued at current prices (current at the time of production).
C. useful in clearly seeing changes in prices over time using GDP.
D. the actual GDP that is created in the economy when we consider all items purchased.
A. calculated based on goods and services valued at constant prices.
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What happens to a country's production possibility frontier if it experiences a natural disaster such as a hurricane or an earthquake? Explain
What will be an ideal response?
General-equilibrium analysis is the study of
A) how an equilibrium is determined in all markets simultaneously. B) how an equilibrium is determined in all closely related markets. C) the effects of a change in a market, and all spillover effects in all related markets. D) All of the above.
The three main sources of barriers to entry are monopoly resources, government regulation, and the firm's production process
a. True b. False Indicate whether the statement is true or false
You are the Minister of Trade for a small island country with the following annual PPC:
You are negotiating a trade agreement with a neighboring island with the following annual PPC:
As soon as you see the other island's PPC, you realize there are:
A. no gains from trade because there is no difference in your ability to harvest coconuts. B. gains from trade because your island has a comparative advantage in coconuts. C. no gains from trade because you both have the same comparative advantage. D. no gains from trade because the other island has an absolute advantage.