The GDP is a measure of the market value of all final goods and services produced in the economy in a given time period.
Answer the following statement true (T) or false (F)
True
GDP measures the total production of final goods and services in an economy and is an important variable for comparing two economies.
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The figure above shows the production possibilities frontier for a country. If the country is producing at point D, then the
A) resources are being used efficiently. B) technology associated with producing SUVs and compact cars is advancing. C) resources are not being used efficiently and/or are unemployed. D) production of SUVs and compact cars is maximized. E) None of the above answers is correct because it is not possible to produce at point D.
During the New Deal, the structure of capitalism in the U.S. changed forever in each of the following areas except for one. Which one?
(a) The relation between government and markets changed in the sense that government interventions of one sort or another occurred. (b) The Federal Reserve System began to control actively the money supply and interest rates to control overall levels of consumer and business spending in the economy. (c) Government spending rose and was intended to serve as an economic stimulus, similar to private investment spending. (d) Individual households began to take greater charge over their own economic welfare with no government assistance.
If the ____ is/are fixed, a change in nominal income is equivalent to a change in real income
a. price level b. interest rates c. tastes and preferences d. future expectations
A restaurant hires cooks and waiters. Cooks earn $10 an hour; waiters earn $5 an hour. The manager, who wants to maximize the number of meals served given a fixed payroll of $45 per hour, expects the following from cooks and waiters: 
Given the above information, the manager should hire
A. 2 cooks and 5 waiters. B. 2 cooks and 4 waiters. C. 3 cooks and 2 waiters. D. 3 cooks and 4 waiters. E. none of the above