To examine how total production in an economy has changed over time, it would be better to examine
A) nominal GDP.
B) real GDP.
C) GDP at current prices.
D) All of the above would give equal measures of production changes over time.
B
You might also like to view...
A supply curve slopes upward because
a. as more is produced, total cost of production falls. b. an increase in input prices increases supply. c. the quantity supplied of most goods and services increases over time. d. an increase in price gives producers an incentive to supply a larger quantity.
One timing problem with fiscal policy to counter a recession is an "operational lag" that occurs between the:
A. end of the recession and the time it takes to recognize that the recession has ended. B. time fiscal action is taken and the time that the action has its effect on the economy. C. time the need for the fiscal action is recognized and the time that the action is taken. D. start of the recession and the time it takes to recognize that the recession has started.
Suppose your community is considering using public money to build a new sports stadium for a new team that will only come to the community if it is built for them. Suppose you are watching a news broadcast in which the supporters are saying that it will enhance economic activity because of the increase in restaurant activity that will occur around the new stadium. Now suppose you hear that an independent economist is going to appear during the next segment. It is likely she will say
A. it may be a short-term cost, but in the long term it will be worthwhile. B. there will be no new economic activity created. C. there will be no new economic activity created in net because the same amount of money will be spent in the city whether or not there is a team. It will simply substitute from the game to something else. D. the economic activity created in the area will make it worth the investment.
A natural monopoly
A. usually arises when there are large economies of scale. B. involves multiple firms selling differentiated products. C. is derived from deposits of natural resources. D. requires government licensing initially.