Suppose that over the last twenty-five years a country's nominal GDP grew to three times its former size. In the meantime, population grew by 40 percent and prices rose by 100 percent. What happened to real GDP per person?
a. It more than doubled.
b. It increased, but it less than doubled.
c. It was unchanged.
d. It decreased.
b
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An insurance company offering discounts to students with high grades in school an example of:
A. screening. B. signaling. C. statistical discrimination. D. building a reputation.
In an open economy, a society's consumption possibilities are typically ________ its production possibilities.
A. equal to B. less than C. unrelated to D. greater than
Which of the following is NOT a benefit of money when used as a medium of exchange?
A. allowing for some economic efficiencies B. providing economic growth C. allowing individuals to specialize D. allowing individuals to pay off debts
Suppose a competitive firm is paying a wage of $12 an hour and sells its product at $3 per unit. Assume that labor is the only input. If hiring another worker would increase output by three units per hour, then to maximize profits the firm should
A) not hire an additional worker. B) not change the number of workers it currently hires. C) hire another worker. D) There is not enough information to answer the question.