If nominal GDP is $5 trillion and real GDP is $4 trillion, the GDP deflator is
A) 12.5.
B) 80.
C) 125.
D) 800.
Answer: C
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According to the text, if a policy is designed to move a production process toward efficiency when pollution exists, the best tax is a
A. proportional income tax. B. progressive income tax. C. sales tax. D. lump sum tax on pollution.
By 2016, the U.S. trade deficit with China
A) had fallen to almost zero. B) was nearly $300 billion. C) had decreased to the same level of the early 2000s. D) had become a trade surplus.
If a corporation goes bankrupt:
A. neither stockholders nor bondholders receive any money. B. stockholders get paid from the sale of company assets before bondholders do. C. bondholders get paid from the sale of company assets before stockholders do. D. stockholders must honor the debts to bondholders out of personal assets if necessary.
If Tom spends 4 hours a day on Facebook and the minimum wage in his country is $7 per hour, what is his opportunity cost of spending time on Facebook? Given that spending time on Facebook has an opportunity cost, does this analysis suggest that Tom
should work rather than spending his time on social networking?