Last year an economy produced 3400 hurleys, 3000 footballs and 2000 rugby balls. The price of hurleys was €30, the price of footballs was €20 and the price of rugby balls was €25. Nominal GDP was:
(a) €212,000.
(b) €660,000.
(c) €420,250.
(d) Cannot be computed.
Answer: (a) €212,000.
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An asset is liquid if:
A) its value does not change from day to day. B) it can be easily converted into cash without loss of value. C) it offers a positive rate of interest. D) its value is more likely to increase in future.
Which of the following is illegal according to the antitrust laws?
A) the use of coupons B) price discrimination based on cost differences C) vertical mergers D) price fixing
For effective price discrimination to occur, a seller must
a. be a pure monopolist. b. have large economies of scale and control over a key natural resource. c. face a horizontal demand curve for its product. d. be able to prevent consumers from reselling the product to other consumers.
Intermediate goods and services are:
A. used only as inputs to produce something else and are not counted as separate items in GDP. B. goods that consumers buy in parts-like a new tire for their car-and are included as separate items in GDP. C. goods that consumers buy in parts-like a new tire for their car-and are not included as separate items in GDP. D. used only as inputs to produce something else and are counted as separate items in GDP.