Which of the following correctly describes real GDP?
a. Real GDP is GDP after subtracting spending on frivolous items like candy, movies, and toys.
b. Real GDP is GDP after subtracting false growth induced by imported goods.
c. Real GDP is GDP after adding export sales to foreign countries.
d. Real GDP is GDP after subtracting out the effects of inflation.
d
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Nominal personal consumption expenditures in the United States were $1760.4 billion in 1980 and rose to $3839.3 billion in 1990. The price index for personal consumption expenditures was 58.5 for 1980 and 92.9 for 1990, where 1992 was the base year
Calculate the percent change in real personal consumption expenditures (rounded to the nearest percentage point) in the decade. A) 37% B) 59% C) 118% D) 137%
What is TRUE about every point along a production possibilities frontier?
A) Both people are maximizing utility. B) It is impossible to increase production of either good. C) All allocations are efficient. D) It includes some unattainable points.
Suppose the domestic market demand function in a certain market where Q is measured in thousands of units is Qd = 20 - 2.5P, and the domestic market supply function is Qs = 2.5P - 7.5. Suppose further that the world price for the good in question is $3.40 per unit. If the government places a $1.20 tariff on imported units of this good, how much revenue does the tariff generate?
A. $3,200 B. $3,600 C. $5,400 D. $3,000
The slope of a nonlinear function at some particular point
a. is the slope of the straight line that is tangent to the function at that point. b. is the slope of the straight line connecting the origin and the point. c. cannot be determined. d. is constant for the entire function.