The reason that differences in economic growth rates are important in the long run is that
A) growth compounds over time.
B) population naturally shrinks in most countries.
C) real GDP usually drops when adjusted for inflation.
D) nominal GDP typically increases faster than real GDP.
A
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Refer to the above table. Which country had the largest increase in per capita real GDP between 2014 and 2015?
A) A B) B C) C D) D
If at the profit-maximizing level of output, a monopolist's average-total-cost curve lies above its demand curve, then:
a. the firm should shut down in the short run. b. the firm would earn economic losses. c. the firm would earn economic profits. d. the firm should increase its output. e. the firm should decrease its output.
If a factory hires 1,000 new workers, the nation's output level is probably
a. increasing and unemployment is likely to increase b. increasing and unemployment is likely to decrease by 1000 individuals c. fluctuating d. stable e. increasing and unemployment is likely to decrease by less than 1,000 individuals
Refer to the graph shown. If a competitive industry producing hamburgers is taken over by a pure monopoly firm that maximizes profit:
A. price will remain at $4 but output will fall by 100. B. price will rise to $6 and output will fall by 100. C. price will remain at $6 but output will fall by 100. D. output will remain at 100 but price will rise to $6.