Real GDP is:
A. the actual GDP that is created in the economy when we consider all items purchased.
B. calculated based on goods and services valued at current prices (current at the time of production).
C. calculated based on goods and services valued at constant prices.
D. useful in clearly seeing changes in prices over time using GDP.
Answer: C
You might also like to view...
If, for the last bushel of apples produced and sold by an apple farm marginal revenue exceeds marginal cost, then in producing that bushel the farm
A) added an equal amount to both total revenue and total cost. B) added more to total cost than it added to total revenue. C) maximized its profits or minimized its losses. D) added more to total revenue than it added to total cost.
If Utopia has a closed economy, the number of cases of tile consumed each is ________ per year, and if it has an open economy the number of cases of tile consumed is ________ per year.
A. 450; 200 B. 300; 450 C. 300; 200 D. 200; 450
Assume Qs represents the quantity supplied at a given price and Qd represents the quantity demanded at the same given price. Which of the following market conditions produce a downward movement of the price?
a. Qs = 1,000, Qd = 750 b. Qs = 750, Qd = 750. c. Qs = 750, Qd = 1,000 d. Qs = 1,000, Qd = 1,000.
A good would have a high price elasticity of demand if: a. there are many close substitutes for the good available in the market. b. the good is used every day by almost every household in the economy. c. the good has a low cost in proportion to most consumers' budgets
d. consumers cannot delay the purchase of this good.