The size of total production in an economy is measured by the gross domestic product
a. True
b. False
Indicate whether the statement is true or false
True
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Mister Jones was selling his house. The asking price was $220,000, and Jones decided he would take no less than $200,000. After some negotiation, Mister Smith purchased the house for $205,000. Jones' producer surplus is
A) $5,000. B) $15,000. C) $20,000. D) not able to be calculated from the information given.
Which of the following would not result from all countries specializing according to the principle of comparative advantage?
a. The size of the economic pie would increase. b. Worldwide production of goods and services would increase. c. The well-being of citizens in each country would be enhanced. d. Each country's production possibilities frontier would shift inward.
Some economists advocate government intervention in a market economy when resource costs for a private producer ________ to society.
A. have no relevant cost B. do not reflect the full cost C. are greater than the full cost D. are equal to the full cost
In comparing monetarism and rational expectations theory, we find that:
A. both favor policy rules and for the same reasons. B. both favor policy rules, but for different reasons. C. both favor discretionary policies. D. the former favors discretionary policy, while the latter favors policy rules.