Which of the following statements about the comparison between GDP in China and in the United States is CORRECT?
A) Using the exchange rate to value China's GDP in dollars shows that China's GDP per person exceeds the GDP per person in the United States.
B) Using purchasing power parity prices to value China's GDP in dollars shows that China's GDP per person exceeds the GDP per person in the United States.
C) China's GDP per person is higher using purchasing power parity prices rather than the exchange rate when valuing China's GDP in dollars.
D) None of the above answers are correct because they are all false statements.
C
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Wage elasticity of labor supply is a term referring to the
a. percentage change in wages demanded divided by the percentage change in wages supplied. b. percentage change in wages supplied divided by the percentage change in wages demanded. c. percentage change in wages divided by the percentage change in hours worked. d. percentage change in hours worked divided by the percentage change in wages.
If the price of Chinese food decreases, then the demand for chopsticks decreases because they are complementary goods
Indicate whether the statement is true or false
Lead is an important input in the production of crystal. If the price of lead decreases, then we would expect the supply of
a. crystal to be unaffected. b. crystal to decrease. c. crystal to increase. d. lead to increase.
Part of the explanation for why the aggregate-demand curve slopes downward is that a decrease in the price level
a. decreases the real value of money. b. increases the real value of the dollar in foreign exchange markets. c. decreases the interest rate. d. All of the above are correct.