List some of the reasons why GDP should not be considered an effective measure of the standard of living in a country.
What will be an ideal response?
Answer:
- Regional variations in income and spending
- Inequalities in income and wealth
- Changes in life expectancy
- Innovation and the development of new products
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A supply schedule can be plotted on a graph to yield a supply curve.
Answer the following statement true (T) or false (F)
Product differentiation means
A) making a product that has perfect substitutes. B) making a product that is entirely unique. C) the inability to set your own price. D) making a product that is slightly different from products of competing firms. E) making your demand curve horizontal.
Wealth and substitution effects explain why the aggregate demand curve has a positive slope
Indicate whether the statement is true or false
Refer to Table 9-7. Suppose that the data in the table above reflect price levels in the economy. What is the inflation rate between 2015 and 2016?
A) 2.9% B) 3.5% C) 4.6% D) 5% E) 7.5%