Which of the following would be most appropriate for the measurement of differences in the average standard of living of people at different points in time? Select one:
a. Nominal GDP
b. Real GDP
c. Nominal per capita GDP
d. Real per capita GDP
d. Real per capita GDP
You might also like to view...
Refer to Figure 3-4. If the current market price is $25, the market will achieve equilibrium by
A) a price increase, increasing the quantity supplied and decreasing the quantity demanded. B) a price decrease, decreasing the supply and increasing the demand. C) a price increase, increasing the supply and decreasing the demand. D) a price decrease, decreasing the quantity supplied and increasing the quantity demanded.
Refer to Figure 10.3. A negative demand shock with no change in the real interest rate is best represented by ________ in panel (a) and ________ in panel (b)
A) a shift from AE3 to AE2; a shift from IS2 to IS1 B) a shift from AE2 to AE3; a shift from IS1 to IS2 C) a shift from AE2 to AE1; a movement from point B to point A D) a shift from AE3 to AE1; a movement from point C to point A
In the presence of positive externalities, a free market will choose a price which is too ____ and produce an output which is too ____ compared with the social optimum
a. high; low b. low; low c. high; high d. low; high e. marginal; inequitable
Saudi Arabia produces oil more cheaply than Iran but the opportunity cost of producing oil in Saudi Arabia is higher than in Iran. Saudi Arabia produces figs more cheaply than Iran but the opportunity cost of producing figs in Saudi Arabia is lower than in Iran. Should they trade? Who should produce what? a. No, Saudi Arabia is more efficient in both oil and figs and will lose by trading. b
Yes, because Saudi Arabia has an absolute advantage in figs, it should produce figs and Iran should produce oil. c. Yes, because Saudi Arabia has a comparative advantage in oil, it should produce oil and Iran produce figs. d. Yes, because Iran has a comparative advantage in oil, it should produce oil and Saudi Arabia produce figs. e. No, because the terms of trade would be negative for Iran.