Consider an economy that only produces wooden chairs. In 2012, the economy produced 100 wooden chairs priced at $10 each. The nominal GDP of the economy for the year 2012 will be:
A) $10. B) $1,000. C) $100. D) $10,000.
Consider an economy that produces only cell phones. In the year 2012, the economy manufactures 275 cell phones, and each cell phone sells at $200. In the year 2013, the economy manufactures 280 cell phones but the price of each cell phone falls to $180.
B
You might also like to view...
From this chapter we know that a profit maximizing competitive firm will set its price equal to the market price. Briefly describe why a profit maximizing competitive firm will not set its price above the market price. Also, describe why a profit maximizing competitive firm will not set its price below the market price.
What will be an ideal response?
From the economic point of view, why might a sophomore in college spend a great deal of time getting to know an attractive classmate rather than getting to know the issues behind the president's deficit-reduction policies?
A) She is selfish. B) She considers it a more productive use of her time. C) She obviously has no interest in politics. D) The federal budget deficit cannot possibly affect her life.
In the figure above, the total revenue of a perfectly price-discriminating monopolist at the profit-maximizing output is equal to the area of
A) 0aij. B) 0dgh. C) aci. D) obeij.
Under a flexible exchange rate system, an increase in the value of the U.S. dollar in terms of other currencies is referred to as
A) a depreciation of the U.S. dollar. B) an appreciation of the U.S. dollar. C) a monetizing of the U.S. dollar. D) a devaluation of the U.S. dollar.