Which of the following statements is the best justification of the use of GDP per capita to compare welfare between nations?
A. GDP per capita is commonly used as a measure of welfare so it must be a valid measure.
B. GDP per capita is independent of the country's currency so it is not subject to change due to variations in exchange rates.
C. GDP per capita is calculated in a consistent and reliable way so it is not subject to measurement errors.
D. GDP per capita is highly correlated with alternative measures of quality of life.
Answer: D
You might also like to view...
If money is superneutral,
A) a one-time change in the money supply has no real impact. B) a one-time change in the money supply has a real impact. C) a change in the money growth rate has no real impact. D) a change in the money growth rate has a real impact.
In a supply-and-demand model of a labor market, which of the following should move toward an equilibrium wage and quantity?
a. cyclical unemployment b. the labor market c. the macro economy d. sticky downward wages
Assume individuals consider only the long run effects of changes in future macro variables when forming expectations of future output and future interest rates. Suppose individuals expect future government spending to increase. Given this information, individuals will expect
A) an increase in the expected future interest rate and no change in expected future output. B) an increase in the expected future interest rate and an increase in expected future output. C) an increase in the expected future interest rate and a reduction in expected future output. D) an increase in the expected future interest rate and an ambiguous effect on expected future output.
When a pure monopolist is producing its profit-maximizing output, price will:
A. be less than MR. B. equal neither MC nor MR. C. equal MR. D. equal MC.