Why is GDP only an imperfect valid measure of the value of output produced by an economy?
What will be an ideal response?
GDP will miss transactions that do not take place in organized markets, does not include leisure time, and ignores the underground economy. In addition, GDP does not value changes in the environment that arise through the production of output.
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Refer to Figure 24-1. Ceteris paribus, an increase in households' expectations of their future income would be represented by a movement from
A) AD1 to AD2. B) AD2 to AD1. C) point A to point B. D) point B to point A.
Which of the following is an assumption made while constructing a production possibilities frontier [PPF]?
a. Dynamic technological know-how b. Flexible resource quality c. Fixed resource quantity d. Full and efficient use of resources e. Flexible money supply
Games with more than three players are generally analyzed using a
A) table. B) payoff matrix. C) graph. D) decision tree.
Refer to the table above. What is the shortage in the market when the price of a notebook is $3?
A) 4 units B) 10 units C) 16 units D) 20 units