Refer to Table 19-1. Suppose that a simple economy produces only four goods and services: sweatshirts, dental examinations, coffee drinks, and coffee beans. Assume all of the coffee beans are used in the production of the coffee drinks. Using the information in the above table, nominal GDP for this simple economy equals
A) 3,090 units.
B) $7,250.
C) $8,750.
D) $9,750.
C
You might also like to view...
Keynes believed that the way to prevent recessions and depressions was to
A) increase aggregate demand through expansionary fiscal policy. B) maximize the crowding out effect. C) only change tax rates as a means of regulating the economy. D) reduce spending when there is a recessionary ga
The length of time people spend in search of a job increases if
A) there is a sudden change in technology. B) the population ages. C) the criteria necessary to qualify for unemployment benefits increases. D) unemployment benefits increase. E) the minimum wage is decreased.
Which of the following would be included in the total costs of production when an entrepreneur tries to compute her economic profit?
A) Foregone wages B) Foregone interest C) Foregone rent D) All of the above. E) None of the above.
Unemployment that results from a mismatch of workers' abilities and skills with current requirements of employers is
A) frictional unemployment. B) structural unemployment. C) cyclical unemployment. D) seasonal unemployment.