Which is better for making comparisons over time, nominal GDP or real GDP, and why?
What will be an ideal response?
Nominal GDP is the market value of all final goods and services produced within a given time period in the dollars of that period. Real GDP is the market value of all final goods and services produced within a given time period, adjusted for inflation. Because real GDP does not include price level changes, it allows more accurate comparison of production over time. Nominal GDP is not good for making comparisons because it is impossible to determine if output or only prices have changed.
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The official reserve account includes all of the following EXCEPT
A) gold. B) SDRs. C) foreign currencies. D) silver and other precious metals.
Average product curve tells us:
A. the level of inputs that are the most productive. B. the cost-minimizing level of inputs to hire. C. the profit-maximizing level of inputs to hire. D. All of these are true.
Answer the following statements true (T) or false (F)
1. The highest unemployment rate in the United States in recent years has been among adult females. 2. Part-time workers who want full-time employment but cannot find it are considered underemployed. 3. Increases in the federal minimum wage directly affects only a small percentage of U.S. workers. 4. Because of increases in the minimum wage, new entrants into the labor force find it easier to find employment. 5. Many economists believe that increases in the minimum wage tend to create a labor surplus.
If a perfectly competitive firm's marginal revenue was less than its marginal cost, a. it would raise its price in order to increase its profits
b. it would contract its output but not raise its price in order to increase its profits. c. it is currently earning economic losses. d. both (a) and (c) are true.