Real GDP is
A. nominal GDP adjusted for indirect business taxes.
B. nominal GDP adjusted for price changes.
C. nominal GDP adjusted for transfer payments.
D. nominal GDP adjusted for depreciation.
Answer: B
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Which of the following could not cause an increase in both the equilibrium price and quantity of a good exchanged? a. Increased input prices
b. Decreased incomes for an inferior good. c. An increase in the price of a substitute good. d. Increased tastes for the good.
Bob's Barber Shop cut 3,000 heads of hair in 2014 and 3,100 in 2015. The price of a haircut was $7 in 2014 and $8 in 2015. If 2014 is the base year, what was Bob's contribution to nominal GDP in the year 2014?
A. $24,000 B. $21,700 C. $24,800 D. $21,000
Which of the following would a person who believed in the doctrine of laissez faire disapprove of?
(A) The invisible hand of the marketplace. (B) Government funding of education. (C) Self-interest as the motivating force in the free market. (D) Consumer sovereignty.
The concept of "wages" includes the following items, except:
A. Direct money payments like salaries and commissions B. Bonuses and royalties C. Amounts spent by workers D. Fringe benefits like health insurance and paid leave