In order to assess the level of prosperity in a nation in a given year, should we examine the level of that nation's real GDP per person, or should we examine the growth rate of that nation's real GDP per person?
The level of that nation's real GDP provides the better assessment of prosperity.
You might also like to view...
A good economic model
A) describes every aspect of the economic world, with no exception. B) includes all those features of the world that can be described numerically. C) includes only those features of the world that are needed for the purpose at hand. D) should not include more than two variables.
Juanita has just started a business and is using her personal car to deliver goods. The use of her car is an example of
A) an explicit cost to the business. B) an implicit cost to the business. C) financial capital. D) interest.
Alternate Outputs from One Day's Labor Input: United States: 12 bushels of wheat or 3 yards of textiles. Great Britain: 3 bushels of wheat or 12 yards of textiles. The opportunity cost of one bushel of wheat in Great Britain is a. 1 yard of textiles
b. 3 yards of textiles. c. 12 yards of textiles. d. 4 yards of textiles.
If money was not used as a medium of exchange,
A) the transaction costs of exchange would be lower. B) our standard of living would probably improve. C) economic efficiency would increase. D) the gains from trade would be severely limited.