Bananaland produces only bananas and sunscreen and the quantities and prices for 2012 and 2013 are given in the table above. The base year is 2012. In 2013, which is larger, nominal GDP or real GDP?
A) Both are the same size.
B) Nominal GDP is larger.
C) Real GDP is larger.
D) The answer is ambiguous.
E) More information is needed to determine which is larger.
B
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Why is the U.S. putting less emphasis on multilateral and more emphasis on bilateral trade agreements?
What will be an ideal response?
High and variable rates of inflation will
a. distort the information delivered by market prices. b. encourage people to spend more time producing and less time trying to protect their wealth. c. decrease the risks that accompany the undertaking of long-term investment projects. d. promote economic growth and the efficient use of resources.
Suppose Katrina always buys exactly 5 Rain Forest Bars each week, regardless of whether they are regularly priced at $1 or on sale for $0.50 . Based on this information, what is Katrina's price elasticity of demand for Rain Forest Bars?
a. 0 b. -1 c. Infinity d. Answer cannot be determined
Which of the following would be most likely to cause an increase in the wage rate for a particular job?
a. A decrease in the danger of this job. b. An increase in the number of workers with the skills for this job. c. An increase in the danger of this job. d. An improvement in the working conditions associated with this job. e. A decrease in the amount of training needed to perform this job