The United States can use all its resources to produce 250 DVDs or 500 shoes. China can use all of its resources to produce 30 DVDs or 300 shoes. The opportunity cost of producing a DVD in the United States is
The relationship between real GDP and potential GDP over the business cycle can be best summarized by which of the following statements?
A south sea island produces only coconuts. In 2012, the price of a coconut is $1 and the quantity produced is 200. In 2013, the price of a coconut is $1.50 and the quantity produced is 250. 2012 is the base year. Real GDP in 2013 is ________.
Computer chips are a normal good. Suppose the economy slips into a recession so that income falls. As a result, the demand for computer chips ________ so that the price of a computer chip ________.
The expenditure approach to measuring GDP is done by using data on only
Scarcity requires that we
Why is a production possibilities frontier bowed out (concave)?
The law of supply states that, other things remaining the same,
When a person has a comparative advantage in producing a good or service, the person has
The difference between nominal GDP and real GDP is
Assume a competitive market is in equilibrium. There is an increase in demand, but no change in supply. As a result the equilibrium price ________, and the equilibrium quantity ________.
GDP is best defined as the ________ in a given time period.
The circular flow model is used to show the
Real GDP can increase if the
A point on the production possibilities frontier reflects an
Consumers regard Dell computers and Apple computers as substitutes. If the price of a Dell computer decreases, the
Hank requires 1 hour to cut the grass and 3 hours to clean the house. His sister Holly requires 1 hour to cut the grass and 4 hours to clean the house. Which of the following statements is true?
The demand for oranges increases while the supply decreases. The equilibrium price of oranges ________, and the equilibrium quantity ________.
In order to measure gross domestic product, we can follow
The opportunity cost of one more slice of pizza in terms of sodas is the
One reason the total sum of the income categories does not equal GDP is that
The law of demand implies that, other things remaining the same,
Moving along the production possibilities frontier itself illustrates
What is gained when people engage in specialization and trade?
Because of the circular flows of expenditure and income in the economy, total ________ equals total ________ equals total ________.