Real GDP is used most effectively to
A. Make international comparisons of the standard of living.
B. Measure how much output can be consumed on a sustainable basis.
C. Measure how much income households receive.
D. Analyze the growth rate of the economy over time.
Answer: D
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Which of the following creates an obstacle to pursuing freer international trade?
a. Consumers do not recognize their potential gains b. Losses are widespread c. Domestic producers do not recognize their potential losses d. Government has plenty of political will and support to remove trade barriers e. Consumers can easily organize to demand free trade
Which of the following statements best describes one of the schools of thought regarding the “new economy” controversy?
a. Increased military spending post-9/11 has contributed to the growth in U.S. productivity. b. Extraordinary advances in communications and information technology have contributed to the growth in U.S. productivity. c. The increase in immigration has contributed to the growth in U.S. productivity. d. The aging U.S. population has contributed to the growth in U.S. productivity.
The cost of processors and memory has decreased dramatically in the past twenty-five years. As a result, we have seen
a. an increase in demand. b. an increase in supply. c. a decrease in demand. d. a decrease in supply.
Economists at the U.S. Department of the Treasury help design U.S. coins and paper money
a. True b. False Indicate whether the statement is true or false