If production remains the same and all prices double relative to the base year, then the GDP deflator is:
A. 1/4.
B. 1/2.
C. 1.
D. 2.
Answer: D. 2.
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John has to choose between two jobs: one that offers him $50 per hour and one that offers him $35 per hour. The opportunity cost of choosing the job that offers him $50 per hour is:
A) $1.5 per hour. B) $15 per hour. C) $35 per hour. D) $85 per hour.
The principle of compound interest insures that
A) a small difference in the per capita GDP between countries in one year will grow to a large difference in the long run. B) a small difference in the per capita GDP growth rate between countries in one year will grow to a large difference in the long run. C) U.S. interests are compounded by the interests of Great Britain and Germany. D) U.S. interests are compounded by the interests of all other countries.
In 2007, the government spent over $140 billion on transportation, with nearly ______ percent of this amount being spent on the highway system
a. 5 b. 10 c. 35 d. 80 e. 95
When marginal product ________ average product, average product must be ________.
A. is less than; increasing B. is greater than; increasing C. is greater than; decreasing D. Any of these is possible.