When considering GDP as a measure of the nation's economic performance, which of the following statements is NOT true?
A. GDP is useful to map changes in the economy's domestic economic performance over time.
B. GDP is underestimated because it does not include illegal activities.
C. GDP would be a better measure of economic performance if it included nonmarket activities.
D. GDP is a good measure of a nation's overall welfare.
Answer: D
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An increase in energy prices is a likely cause of
A) Great Depression. B) Korean War inflation. C) the recession in 1973-1975. D) the Great Moderation.
If a particular factor has a specific use, its transfer earning is very high
a. True b. False Indicate whether the statement is true or false
In order to practice price discrimination, the firm must
a. offer a good at different prices to different segments of the market b. first establish a monopoly position in the market c. make sure the practice is sanctioned by the government d. select a price so that different segments of the market will demand different quantities e. first collude with the other firms in the industry