Economic growth is an exponential process because gains made in one year accumulate in future years.
Answer the following statement true (T) or false (F)
True
A constant real economic growth rate is compounded from the base year going forward. It is compounded like the compound interest on a bank certificate of deposit. Because of this, the absolute nominal growth in dollar terms gets bigger each year.
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Thinking of a Gap store as a production plant, explain why Gap is making a decision to reduce the size of its stores. Is Gap's decision a long-run decision or a short-run decision?
What will be an ideal response?
Which one of the following is true?
a. Nike has a more inelastic demand curve than shoes b. The demand curve for gas is more elastic in the short-run than in the long-run c. Cigarettes have a more elastic demands than televisions d. Salt has a more inelastic demand than meat
The firm earns an economic profit whenever
a. price is less than average total cost b. marginal revenue exceeds total revenue c. average variable cost exceeds total revenue d. marginal cost minus average cost is positive e. price is greater than average total cost
In a typical year, how accurate are forecasts of inflation and real GDP?
a. within 8-10 percentage points b. within 2-3 percentage points c. within 3/4 of 1 percentage point d. within 1/4 of 1 percentage point