The base year matters for the computation of real GDP because
A) otherwise we cannot compute growth rates.
B) relative prices can change over time.
C) it allows an international comparison of GDP.
D) it establishes a target for macroeconomic policy.
B
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Which of the following is false?
a. Product liability laws can make it unprofitable to sell shoddy merchandise, providing a substantial incentive to provide safe products independent of government regulations. b. Asymmetric information exists when the available information is initially distributed in favor of one party to a transaction relative to another. c. In adverse selection situations, it is rational for a seller with more information about a product to provide a truthful and complete disclosure and make that fact known to a potential buyer. d. Moral hazard arises in part from the fact that it is costly for an insurer to monitor the behaviors of the insured party.
Investors must rely on stockbrokers to give detailed, day-to-day reports on stocks and bonds
a. True b. False Indicate whether the statement is true or false
Of the dozen of studies that study the effect on wages, most of the studies show that immigration decreases the wages of:
A. native workers with low levels of education. B. native PhD holders. C. foreign PhD holders in the U.S. D. college students.
Cradle-to-grave security is most common in ___________ countries.
A. Capitalist B. Communist C. Socialist D. Fascist