1. A growing economy is important in order to: a. compute real GDP. b. reduce taxes. c....
Question:
1. A growing economy is important in order to:
a. compute real GDP.
b. reduce taxes.
c. ensure that everyone's standard of living is equal.
d. meet citizens' expectations for more goods and services per capita.
2. In measuring Gross Domestic Product, market value refers to:
a. the number of goods and services sold during a year.
b. the prices of goods produced but not services provided.
c. the price at which a good or service sells in the market place.
d. the value of sales at all shopping malls, grocery stores and retail outlets throughout the country.
3. Nominal GDP is:
a. the market value of all goods and services produced by U.S. firms, adjusted for price changes.
b. the sum of all environmentally harmful goods and services produced in the United States, adjusted for price changes.
c. the market value of all final goods and services produced within the borders of a country in a year, measured in today's prices.
d. the market value of all final goods and services produced within the borders of a country in a year adjusted for price changes.
4. The country of Duoland has a GDP of $400,000, and the country of Unoland has a GDP of $100,000. The standard of living in Duoland:
a. is higher than the standard of living in Unoland.
b. is lower than the standard of living in Unoland.
c. is the same as the standard of living in Unoland.
d. cannot be determined from the information provided.
Expert Answer:
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