Comparisons of per capita gross domestic product (GDP) between countries:
A. provide an accurate gauge by which to judge living standards.
B. provide information about both market and nonmarket productive capacities.
C. do not necessarily provide a good measure of relative living standards.
D. are misleading because GDP isn't always consumption plus investment plus government spending plus net exports.
Answer: C
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What will be an ideal response?
One reason that insurance companies must regularly deal with imperfect information is because:
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A form of implicit collusion where one firm in an oligopoly announces a price change which is matched by other firms in the same industry is
A) "follow the leader" pricing. B) price leadership. C) retaliation pricing. D) "tit-for-tat" pricing.