Nominal GDP is:
a) the sum of all monetary transactions that occur in the economy in a year.
b) the sum of all monetary transactions involving final goods and services that occur in the economy in a year.
c) the amount of production that occurs when the economy is operating at full employment.
d) money GDP adjusted for inflation.
a) the sum of all monetary transactions that occur in the economy in a year.
You might also like to view...
Which of the following characteristics of a production possibilities frontier indicates that trade-offs must be made?
A. The downward slope B. The upward slope C. The constant slope D. The curvature
An English auction ends when ________
A) no bidder is willing to bid any higher B) a bidder accepts the price announced by the auctioneer C) a bidder bids above the market price of the good D) a bidder bids below the starting bid
Assume that Australia has a comparative advantage in producing surfboards and New Zealand imports surfboards from Australia. We can conclude that
A) New Zealand has an absolute disadvantage in producing surfboards relative to Australia. B) Labor costs are higher for surfboard producers in New Zealand than in Australia. C) Australia has a lower opportunity cost of producing surfboards relative to New Zealand. D) Australia also has an absolute advantage in producing surfboards relative to New Zealand.
When economic profits are zero, accounting profits
A) must be positive. B) will be negative. C) will equal zero. D) could be positive, negative or zero.