Assume an economy is producing only one product. Year 2 is the base year. Output and price data for a five-year period are given.YearUnits of OutputPrice Per Unit14$425537849951010Refer to the above data. If year 2 is chosen as the base year, the real GDP for year 1 is:
A. $20.
B. $25.
C. $4.
D. $16.
Answer: A
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On a national level, the concentration ratio for grocery stores is very low. But, the "true" market for grocery stores is local in nature. What limitation does the geographic market put on the measure of concentration for grocery stores?
A) On the local level, grocery stores are more concentrated than they appear on the national level. B) On the local level, grocery stores are not as concentrated as they appear on the national level. C) The level of concentration is overestimated when viewing the national level. D) Both answers A and C are correct.
Which of the following is an unit excise tax?
A. A tax of 15% B. An admission fee of $2.00 on each ticket purchased C. An ad valorem tax of $3.00 D. An income tax of $3.00
Under private enterprise, production is guided by _____________________________.
Fill in the blank(s) with the appropriate word(s).
Refer to the information provided in Table 19.4 below to answer the question(s) that follow.Table 19.4Total IncomeTotal Taxes$10,000 $1,000 20,000 2,400 30,000 4,500 40,000 8,000Related to the Economics in Practice on page 393: Refer to Table 19.4. If income increases from $30,000 to $40,000, the marginal tax rate is
A. 5%. B. 20%. C. 35%. D. indeterminate from this information.