If one is interested in comparing the economic well-being of citizens across countries which of the following measures would be the most useful: nominal GDP, real GDP, or real GDP per capita? Explain
What will be an ideal response?
Real GDP is preferred over nominal GDP since price changes have been omitted. However, real GDP per capita takes into account the variation in populations across countries. Thus, real GDP per capita would be the most useful measure of economic well-being.
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What does it mean for a producer to internalize an externality?
A) The producer is limiting outsourced production. B) The producer is prohibited from producing products which generate externalities. C) The producer must find ways to address externality problems which extend beyond geographic borders. D) The producer is forced to factor into production costs the cost of the externalities created in their production of output.
Which of the following is a primary function served by financial markets?
a. creating new products and product lines b. facilitating large-scale production methods c. encouraging laborers to unionize d. implementing new production techniques e. discovering new markets for existing products
The Clayton Act of 1914 allows those harmed by illegal arrangements to restrain trade to
a. sue for up to two times the damages they incurred. b. sue for up to three times the damages they incurred. c. sue for up to four times the damages they incurred. d. sue for damages, but only for the actual amount of damages they incurred.
The estimated demand for a good is
= 25 - 5P + 0.32M + 12PRwhere Q is the quantity demanded of the good, P is the price of the good, M is income, and PR is the price of related good R. If the price of the good falls by $4, the quantity demanded will ________ by ________ units.
A. increase; 50 units B. decrease; 12 units C. increase; 20 units D. increase; 48 units E. increase; 5 units