Which of the following is true?
A) The gap between the income per capita of U.S and the income per capita of poorer countries is small when exchange rate-based measures are used.
B) The gap between the income per capita of U.S and the income per capita of poorer countries is large when PPP-based measures are used.
C) Exchange rate-based measures of income per capita are identical to PPP-based measures.
D) Exchange rate-based measures of income per capita differ from PPP-based measures of income per capita.
D
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Absent an ability to price discriminate, if a monopoly wants to sell more output, it must
a. raise its price b. lower its price c. increase barriers to entry d. obtain government permission e. negate its patent protection
If the unemployment rate rises, which policies would both be appropriate to reduce it?
a. increase taxes, increase government spending b. increase taxes, decrease government spending c. decrease taxes, increase government spending d. decrease taxes, decrease government spending
What is the difference between the structural stagnation hypothesis and the secular stagnation theory?
A. Structural stagnation sees foreign countries moving down the value-added chain as the cause of a stagnation, while secular stagnation sees foreign countries moving up the value-added chain as the cause of a stagnation. B. Structural stagnation sees too little investment as the cause of a stagnation, while secular stagnation sees globalization as the cause. C. Structural stagnation sees globalization as the cause of a stagnation, while secular stagnation sees too little investment as the cause. D. There is no difference, they both attribute stagnation to too little investment.
The measurement of economic growth cannot take into account
A. productive activity in an economy. B. the service sector of an economy. C. differences in inflation rates across countries. D. cultural aspects of life in a country.