If you wanted to measure whether the output of an economy was increasing or decreasing across time periods, you would use the real GDP data rather than the nominal GDP data because
What will be an ideal response?
real GDP adjusts for changes in the general level of prices, but nominal GDP does not.
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If GDP per capita in year T is represented by YT, and the GDP per capita in the following year is represented by YT+1, then the formula for calculating growth rate between these two years is ________
A) (YT+1 - YT)/YT B) (YT+1 + YT)/YT+1 C) (YT+1 + YT)/YT D) (YT+1/YT)/100
Which of the following statements characterize an oligopoly market? a. Oligopoly firms are guaranteed profits due to the lack of competition
b. Firms are aware that their own economic behavior will influence the decisions of rivals. c. There are few barriers to entry. d. Firms choose price and output independently from the decisions made by competitors.
Advocates of an unregulated market system argue that
A. competition promotes efficiency. B. competition leads to product variety and quality. C. competition leads to innovation. D. all of the above.
Refer to the table below. If the U.S. government decides to fix or peg the price of the euro at $1.00, it would have to:
The table below shows the supply and demand schedules for the European euro.
A. Buy 100 euros
B. Buy 360 euros
C. Sell 160 euros
D. Sell 360 euros