Refer to Table 8-1. Suppose that a simple economy produces only four goods and services: sweatshirts, dental examinations, coffee drinks, and coffee beans. Assume all of the coffee beans are used in the production of the coffee drinks. Using the information in the above table, nominal GDP for this simple economy equals
A) 3,090 units.
B) $7,250.
C) $8,750.
D) $9,750.
C
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A bond is a financial security that represents
A) the portion of profits paid to shareholders. B) ownership in a corporation. C) the interest rate paid on a share of stock. D) a promise to repay a fixed amount of funds.
A decrease in demand will result in a(n)
a. increase in equilibrium price and quantity b. decrease in equilibrium price and quantity c. decrease in equilibrium price and an increase in equilibrium quantity d. increase in equilibrium price and a decrease in equilibrium quantity e. change in equilibrium price and quantity only if supply changes too
One consequence of unemployment is that:
A. some productive potential of the economy is being wasted. B. the time and skills of the unemployed are not being put to use. C. it can create uncertainty about the future. D. All of these are consequences of unemployment.
Monopoly power in a market causes:
A. monopolists to profit. B. governments to never allow them. C. market surplus to be constant D. consumers to gain.