Because GDP does not account for improvements in the quality of goods, the GDP calculation:
a. tends to overstate the true value of output in the United States.
b. tends to understate the true value of output in the United States.
c. provides an accurate value of output in the United States.
d. provides the best measure of output in the United States.
e. measures the value correctly because price changes always capture the value of quality changes.
b
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Figure 5-10
In the indifference curve pictured in Figure 5-10, which of the following is clearly true?
A. B is preferred to D. B. B is preferred to C. C. A is preferred to B. D. C is preferred to D.
Refer to Figure 28-2. Suppose the economy is at point C in the figure above. If workers adjust their expectations of inflation, which of the following will be true?
A) The natural rate of unemployment is 6%. B) Workers and firms expect inflation to be 1%. C) The short-run Phillips curve will shift to the left. D) The short-run Phillips curve will shift to the right. E) The economy will move from C to A.
Given the information in the graph above, how much profit does this monopolistic competitor make?
Unfair advertising practices are investigated by the Federal Trade Commission.
Answer the following statement true (T) or false (F)