The major difference between nominal GDP and real GDP is that
A. real GDP is the absolute value of goods and services and nominal GDP is a relative value.
B. real GDP refers to products made in the United States and nominal GDP refers to both exports and imports.
C. nominal GDP is the market value and real GDP has been adjusted for inflation.
D. real GDP is a relative value and nominal GDP is an absolute value.
Answer: C
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Use the following graph to answer the next question. 
If the industry were served by a pure monopoly, the profit-maximizing price and quantity of output would be ________.
A. P1, Q1 B. P1, Q3 C. P3, Q1 D. P2, Q2
When a rent ceiling below the equilibrium rent is put in place, the outcome is
A) efficient because marginal benefit equals marginal cost. B) inefficient because marginal benefit equals marginal cost. C) inefficient because marginal benefit is greater than marginal cost. D) inefficient because marginal benefit is less than marginal cost. E) efficient because marginal benefit is greater than marginal cost.
What is an advantage of using options instead of forward contracts when hedging against exchange-rate risk?
What will be an ideal response?
Under a capitalist economic system,
a. the state owns all or most of the resources b. people are forced to work for a living c. resources are privately owned d. the government determines the allocation of resources e. prices eventually become unnecessary