A one percentage point in the growth rate
A) does not make much difference in the long run per capita real GDP.
B) will not influence the real standard of living in a country.
C) can make a big difference in the per capita real GDP because of urban congestion.
D) can make a big difference in the per capita real GDP because of compounding.
D
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Gross domestic product calculations count only final goods and services because
A) counting all goods and services would lead to double-counting of many activities. B) these are the only goods and services that are purchased in an economy. C) one cannot calculate the quantities of intermediate goods produced. D) it is difficult to measure the prices of intermediate goods produced.
How does economic growth influence the production possibilities frontier?
What will be an ideal response?
The largest portion of any nation's current account is typically
A) imports and exports. B) gold sales. C) the sale of U.S. assets. D) SDRs.
The competitive dimension of monopolistic competition is that
A. Each firm in the industry will lose all of its customers if it raises its price. B. Low barriers to entry tend to push economic profits toward zero. C. High barriers to entry tend to push economic profits toward zero. D. Consumers view each firm's products as interchangeable.