Which of the following statements is true?
A. The inclusion of intermediate goods and services into GDP calculations would underestimate our nation's production level.
B. Nominal GDP + Inflation - Unemployment = Real GDP.
C. Real GDP has been adjusted for changes in the general level of prices due to inflation.
D. Real GDP equals nominal GDP multiplied by the GDP deflator.
Answer: C
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The term "market" in economics refers to
A) a group of buyers and sellers of a product and the arrangement by which they come together to trade. B) a legal institution where exchange can take place. C) an organization which sells goods and services. D) a place where money changes hands.
Related to the Economics in Practice on page 129: Harry's Foods claims that you will pay less for groceries by shopping at their stores. As evidence, Harry's Foods points out that the total price of the bundle of goods that a particular shopper purchased at Harry's Foods was lower than the total price of the same bundle of goods purchased at other stores. Which of the following points out a flaw in the grocery store's argument?
A. Prices on the day the bundle was purchased may not be representative of prices on a typical day. B. It fails to demonstrate that Harry's Foods offers the highest quality groceries. C. The shopper in question may not have purchased the same bundle of goods had he shopped at one of the other stores first. D. It ignores the possibility that Harry's Foods used to charge higher prices than their competitors.
Refer to the information provided in Figure 8.9 below to answer the question(s) that follow. 
Figure 8.9
Refer to Figure 8.9. At the market price of $18, if this farmer produces the profit-maximizing quantity, what profit will he make?
A. $0 B. $2,000 C. $700 D. indeterminate from this information
Which of the following allows monopolistically competitive firms to differentiate their products from competitors in a market?
a. Licensing b. Forming cartels c. Advertising d. Patenting