In 2016, GDP was exactly equal to final sales. This implies that
A. there was a decline in inventories that year.
B. GDP did not grow that year compared to the year before.
C. there was accumulation of inventories that year.
D. there was no change in inventories that year.
Answer: D
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Economic growth is shown by
A) a point near the top of the production possibilities curve. B) a point outside the production possibilities curve. C) an inward shift of the production possibilities curve. D) an outward shift of the production possibilities curve.
Figure 6.1 shows the cost structure of a firm in a perfectly competitive market. If the market price is $40 and the firm is currently producing the profit-maximizing output level, its total fixed cost is:
A. $2,800. B. $5,200. C. $7,200. D. $9,000.
In monopolistically competitive markets, entry barriers:
A) do not exist. B) are more prevalent than in perfectly competitive markets but less than in monopoly markets. C) are more prevalent than in monopoly markets but less than in perfectly competitive markets. D) are blocked.
Two goods are said to be substitutes when a fall in the price of one good:
A) leads to a left shift in the demand for the other good. B) leads to a rise in the price of the other good. C) doesn't affect the demand for the other good. D) leads to a right shift in the demand for the other good.