Which of the following is a TRUE statement concerning economic growth?
A) Changes in per capita nominal GDP are used to measure economic growth, but there are serious problems concerning the desirability of using figures that do not account for pollution and urban sprawl.
B) Changes in per capita real GDP are used to measure economic growth because inflation and population growth can distort nominal GDP figures or total GDP figures.
C) Changes in per capita nominal GDP are used to measure economic growth because population growth can distort the figures and we want to use the nominal amounts since that is what people identify with.
D) Changes in per capita real GDP are used to measure economic growth because this accurately measures all the differences in living standards across countries.
B
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Efficiency involves:
a. producing only one out of many possible commodities. b. producing output using the least amount of labor. c. producing as far inside the production possibilities frontier as possible. d. getting the maximum possible output from available resources. e. producing output using the least amount of capital.
Why is it difficult to determine whether an industry is operating efficiently when there is rapid technological process underway?
What will be an ideal response?
Which of the following would shift the FE line to the right?
A) An adverse supply shock B) An increase in labor supply C) A decrease in the capital stock D) An increase in the future marginal productivity of capital
A share of stock represents a claim on the assets of all the partners
Indicate whether the statement is true or false