What is the difference between nominal and real GDP?
a. Nominal GDP is adjusted for changes in the price level; real GDP is not.
b. Real GDP is adjusted for taxes and transfer payments; nominal GDP is not.
c. Real GDP is adjusted for changes in the price level; nominal GDP is not.
d. Nominal GDP is adjusted for depreciation; real GDP is not.
e. Real GDP is adjusted for depreciation; nominal GDP is not.
C
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Use the following diagram to answer the next question.
In the diagram, solid arrows reflect real flows and broken arrows are monetary flows. Flow (2) might represent
A. the provision of national defense by government. B. a government subsidy to farmers. C. welfare payments to low-income families. D. corporate income tax payments.
Refer to Scenario 12.2. In this game, if the players successfully coordinate and Jerome ends up playing his weak strategy, then
A) Eliza will donate a kidney and Jerome will not donate. B) both Eliza and Jerome will donate a kidney. C) Jerome will donate a kidney and Eliza will not donate. D) neither Eliza nor Jerome will donate a kidney.
Suppose a monopoly produces film and cameras. Consumers demand pictures, which require film and one camera
Two different types of consumers have the following demand for film, qA = 100 - 10p and qB = 80 - 10p. The monopoly cannot price discriminate in the market for film or the market for cameras, but it can bundle the products. The monopoly produces film at a constant marginal cost of $1 per roll. What price will the monopoly set for film and for cameras?
An individual bank may legally loan out an amount equal to its
A. total net worth. B. total vault cash. C. total reserves. D. excess reserves.