GDP is the:
A. sum of coins, bills, and demand deposits circulating in an economy one year period.
B. total expenditures of the federal government over the period of one year.
C. market value of an economy's production of final goods and services in a one year period.
D. market value of an economy's production of all goods and services in a one year period.
Answer: C
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The ________ refers to the situation when people are promoted beyond their level of competence
a. Peter Principle b. Abernathy Principle c. Delaney Principle d. Suskind Principle
Assume that the central bank purchases government securities in the open market. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the real GDP and net nonreserve-related international borrowing/lending in the context of the Three-Sector-Model?
a. There is not enough information to determine what happens to these two macroeconomic variables. b. Real GDP falls, and net nonreserve-related international borrowing/lending becomes more positive (or less negative). c. Real GDP rises, and net nonreserve-related international borrowing/lending becomes more positive (or less negative). d. Real GDP rises, and net nonreserve-related international borrowing/lending becomes more negative (or less positive). e. Real GDP and net nonreserve-related international borrowing/lending remain the same.
Suppose that the marginal cost of producing cottonseed meal is $170 per ton. If the cottonseed oil industry is perfectly competitive and in long-run equilibrium, the average total cost of producing cottonseed oil:
A. is equal to $170 per ton. B. is greater than $170 per ton. C. is less than $170 per ton. D. cannot be determined.
Denny buys a rare coin for $200 and sells the coin one year later for $220. Denny's rate of return is:
A. 10 percent. B. 20 percent. C. 91 percent. D. 110 percent.