In the calculation of real GDP, the value of goods and services is measured in the current prices for each year.
Answer the following statement true (T) or false (F)
False
Nominal GDP measures production using current prices, whereas real GDP using constant prices.
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If an economy tried to use bananas as money, which function would bananas likely have the most difficult time fulfilling?
A) a store of value B) a unit of account C) a medium of exchange D) a means of payment
The existence of inflation does which of the following?
A) facilitates the downward adjustment of real wages B) reduces shoe-leather costs C) reduces tax distortions D) reduces the costs associated with money illusion
The data indicate that:
Answer the question on the basis of the following information for four highway programs of increasing scope. All figures are in millions of dollars.
A. there is no highway program that is economically justifiable on the basis of cost-benefit
analysis.
B. the marginal cost and marginal benefit of Program A are $2 and $9 respectively.
C. the marginal cost and marginal benefit of Program C are $12 and $21 respectively.
D. the marginal cost and marginal benefit of Program A cannot be determined.
In economics, money refers to
A. currency. B. income. C. assets used and accepted as payment. D. wealth.