Which of the following statements is NOT true of GDP?
A. GDP excludes nonmarket production.
B. GDP is the value of final goods and services produced in the economy.
C. GDP is not a measure of a nation's overall welfare.
D. There are no significant weaknesses in using GDP as a measure of the nation's economic performance.
Answer: D
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Peanut butter and jelly are complements for consumers. In 2015, the price of peanut butter increased. As a result, the ________ increased, which led to ________ in the price of jelly and ________ in the quantity of jelly
A) demand for jelly; a decrease; a decrease B) supply of jelly; a decrease; an increase C) supply of jelly; an increase; a decrease D) demand for jelly; an increase; an increase
When a firm is a price searcher, its marginal revenue is
a. equal to price because the firm's demand curve is perfectly elastic. b. equal to price if, and only if, the firm is maximizing profits. c. less than price when the firm is maximizing profits. d. equal to average total cost at the long-run equilibrium output rate.
A business cycle
a. is ups and downs in the level of economic activity over time b. is irregular and unpredictable c. has existed since recorded history d. all
The formula to compute the spending multiplier is:
A. 1 / (MPC + MPS). B. 1 / (1 ? MPC). C. 1 / (1 ? MPS). D. 1 / (C + I).