The nominal GDP of Year 2 is
A) $800.
B) $1050.
C) 1900.
D) $2400.
D
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A recessionary gap is the amount by which
A) the short-run equilibrium level nominal GDP is above the short-run real GDP. B) the short-run equilibrium level nominal GDP is below the short-run real GDP. C) total planned real expenditures exceed total planned production in the long run. D) the short-run equilibrium level of real GDP is below the full-employment level of real GDP.
Product differentiation involves making a product that is
A) slightly different from the products of competing firms. B) no different than the products of competing firms. C) very different from the products of competing firms. D) completely different from the products of competing firms. E) cheaper than the products of competing firms.
Sometimes you will hear economists argue that the infant industry argument against free trade is a weak one because these industries never seem to "grow up." What is meant by this argument?
What will be an ideal response?
Which of the following would be an external cost associated with the manufacture of cigarettes?
a. Price of a pack of cigarettes. b. Price of leaf tobacco. c. Cost to the government of the hospital expenses of indigent smokers. d. Cost to the employer of the higher health insurance premiums due to the hiring of a smoker. e. Cost to the employer of the extra effort lost due to the increased missed days of work as a result of smoking.