Which of the following statements is TRUE?
A. During periods of inflation, nominal GDP increases more rapidly than does real GDP.
B. Real values are expressed in current dollars.
C. Increases in real GDP are evidence that the distribution of wealth is becoming more equal.
D. Nominal values are expressed in constant dollars.
Answer: A
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Refer to Table 2.3. What can be observed about the given resources?
A) Capital is fixed. B) Capital is variable. C) Capital and labor are both fixed. D) Labor is fixed.
To be a natural monopoly a firm must
A) have significant network externalities. B) control a key resource input. C) have economies of scale that are so large that it can supply the entire market at a lower cost than two or more firms. D) be in a government-regulated market.
During Prohibition overdose and accidental poisoning due to alcohol _____ and the variation in the quality of alcohol _______
a. fell; fell b. fell; increased c. increased; fell d. increased; increased
In all cases, macroeconomics deals with
A) what is. B) what should be. C) relatively small units in the economy. D) the entire economy.