How are potential GDP and real GDP alike?
A. They are both influenced by changes in the price level.
B. They both increase when the output gap is positive.
C. They are both adjusted for inflation.
D. They are two different terms for the same thing.
Answer: C
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Which of the following statements is true of the world price of a good?
A) It is determined by the World Bank. B) It is determined by the intersection of the world supply and world demand curves for the good. C) It is always less than the domestic price of the good in the country that exports the good. D) It is always greater than the domestic price of the good in the country that imports the good.
The marginal product of labor is equal to the
A) total product divided by the total number of workers hired. B) increase in the total product that results from hiring one more worker with all other inputs remaining the same. C) slope of the marginal product of labor curve. D) None of the above answers are correct.
The international poverty line at $1.90 a day at purchasing power parity means that in each country the poverty line is the amount that will allow you to buy a basket of goods equivalent to what $1.90 would buy:
A. in the United States. B. in the average economy of all the countries that use the index. C. in the richest of the countries that uses the index. D. in the poorest of the countries that uses the index.
Refer to the graph shown. When the market is in equilibrium, producer surplus is area:
A. A. B. D plus area E plus area F. C. F. D. A plus area F.