Which of the following would most likely cause measured GDP to overstate the actual output produced in a year?
a. Increased production in the underground economy
b. A decline in the quality of goods and services produced
c. Increased production for home use (non-market production)
d. A decline in population
e. Increased purchases of market produced services
B
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A relationship that depends on the basic behavior of consumers and firms and remains unchanged over long periods is called a ________ relationship
A) cyclical B) structural C) frictional D) dynamic
The above figure shows the reaction functions for two pizza shops in a small isolated town. Collusion would result in
A) each firm producing 25 pizzas. B) each firm producing 40 pizzas. C) the firms splitting the production of 100 making 50 pizzas each. D) firm A monopolizing the market by selling 50 pizzas.
An investment will pay $2,000 half of the time and $1,400 half of the time. The standard deviation for this investment is:
A. $300. B. $90,000. C. $1,700. D. $30.
The difference between a price decrease and an increase in income is that
A. An increase in income does not affect the slope of the budget line, while a decrease in price does change the slope. B. A price decrease leaves real income unchanged, while an increase in income increases real income. C. A price decrease does not affect the consumption of other goods, while an increase in income does. D. A price decrease decreases real income, while an increase in income increases real income.