In the base year:
A. nominal and real GDP are equal by definition.
B. real GDP will only be larger than nominal GDP if prices increased in the base year.
C. nominal GDP is always larger than real GDP because prices are held constant.
D. real GDP is always larger than nominal GDP because prices are held constant.
Answer: A
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In the table above, if there are 80 umbrellas produced, the deadweight loss from the 80th umbrella is
A) $10. B) $20. C) $30. D) $40.
Which of the following examples shows a shortage?
a. At $50 per watch, a company produces 10,000 watches and sells the same amount. b. At $50 per watch, a company produces 10,000 watches and has a demand for 100 more. c. At $50 per watch, a company produces 5,000 watches and sells 4,998. d. At $50 per watch, a company produces 5,000 watches and sells 1,000.
If you want a say in the management of a corporation, you should buy
A) common stock. B) preferred stock. C) bonds. D) either bonds or preferred stock.
Explain why the marginal cost of production must increase if the marginal product of a variable resource is decreasing
What will be an ideal response?