Which of the following is true of nominal GDP?
a. It acts as an indicator of the general price level in the economy.
b. It measures the real level of output in the economy.
c. It measures national output based on the current year's prices.
d. It tends to rise by a smaller amount than real GDP when the general price level increases.
e. It measures changes in the output of intermediate goods and services.
c
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If a nonbinding price floor is imposed on a market, then the a. quantity sold in the market will decrease
b. quantity sold in the market will stay the same. c. price in the market will increase. d. price in the market will decrease.
The banking industry is heavily regulated because
a. banking is a monopoly industry. b. most banks are owned by government agencies. c. bankers do what is best for their stockholders, not necessarily what is best for the economy. d. All of the above are correct.
Which of the following is a key assumption in proving the gains from immigration?
a. Immigrants are generally high skilled. b. The productivity of labor rises as the number of workers rises. c. Immigrants are generally low skilled. d. The productivity of labor falls as the number of workers rises.
When economic rent exists
A. resources are allocated efficiently. B. the price is equal to the opportunity cost of the resources. C. price is the same as the discount rate. D. resources are allocated inefficiently.