Which of the following is a main limitation of GDP?
A. GDP figures are grossly inaccurate due to sampling errors.
B. The real definition of what is and is not included in GDP is unclear.
C. GDP includes some products, which by their very nature are bad products, such as military weapons.
D. GDP is not a good measure of a nation's overall welfare.
Answer: D
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Refer to the scenario above. Which of the following shifts will increase the total cost?
A) Shift from apartment Close to Far B) Shift from apartment Far to Very Far C) Shift from apartment Very Close to Close D) Shift from apartment Very Far to Extremely Far
The figure above shows the market for tickets to the Super Bowl the day of the game. Suppose the government imposes an entertainment tax of $100 per ticket
a) What is the equilibrium price of a Super Bowl ticket before the tax? What is the price paid by buyers after the tax? What is the price received by sellers after the tax? b) What is the equilibrium quantity of tickets before the tax? What is the equilibrium quantity after the tax? c) Do buyers or sellers bear the largest incidence of the tax?
Use the following table for a hypothetical single-product economy. year units of output price per unit price index (1=100) 1 10 10 100 2 12 20 200 3 15 30 300 4 20 40 400 Refer to the above data. Nominal GDP in year 3 is:
a) $100. b) $450. c) $225. d) $150.
In the graph showing the data for the short-run and long-run Phillips curve from 1961–1973, movement along the short-run Phillips curve is represented by the move from ______.
a. Point A to Point B
b. Point A to Point C
c. Point B to Point C
d. Point C to Point A