When studying changes in the economy over time, economists want a measure of the total quantity of goods and services the economy is producing that is not affected by changes in the prices of those goods and services. In other words, economists want to study
a. nominal GDP.
b. real GDP.
c. the GDP deflator.
d. GNP.
b
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Fixed costs of production in the short run
A. are low in proportion to variable costs in the short run. B. are a function of the level of variable costs. C. increase as the firm produces more output. D. cannot be reduced by producing less output.
Use the following table to answer this question, which provides information on the production of a product that requires one variable input.InputTotal Product00102002060030720408205090060980The average product of the 30th input item is
A. 200. B. 120. C. 24. D. 12.
Net foreign investment is equal to
A) foreign direct investment. B) the balance of trade. C) capital inflows minus capital outflows. D) net foreign portfolio investment plus net foreign direct investment.
In countries such as Canada that have socialized health care, the government operates hospitals, and health-care services are financed through tax revenue. In these countries,
A) the government is able to provide as much health care, free of charge, as citizens would like. B) methods other than price, such as political rules and waiting lists, must be utilized to allocate health-care services. C) a large number of services, such as MRIs, that involve expensive equipment are performed. D) citizens are usually so satisfied with their health-care system that they never travel to other countries to purchase health-care services.