Category: Economics

➤ When should you use nominal GDP versus real GDP?
Use nominal GDP to measure the economy’s size in current dollars or for within-year comparisons at prevailing prices. Use real GDP when you want to compare output over time while removing inflation. Real GDP applies constant base-year prices to isolate true changes in production and productivity.

Henry’s budget is 4×1+8×2+20×3=120 If Henry is currently spending all his income, he will have to give up units of good x2 to get one more unit of good x1. (Give your answer to three decimals.)

➤ How does exploratory research differ from descriptive and causal research?
Exploratory research seeks to discover and clarify problems using flexible, qualitative methods to generate hypotheses. Descriptive research measures and documents characteristics with structured tools and representative samples. Causal research tests cause-and-effect using experiments or quasi-experiments. Each type serves a distinct stage in the research process.

Which of the following options in relation to the source of error in predicting impacts is correct? Valuing the cost of labour using market price will underestimate net benefits in the social CBA.

Good 2016 Quantity 2016 Price 2017 Quantity 2017 PriceAvocados 550 $1.00 700 $1.20Butter 825 $5.00 1050 $5.25Cherries 900 $7.00 900 $8.00If 2016 is the base year, real GDP for 2016 is:

In Econland exports equal 25 percent of total output, while imports equal 20 percent of total output. Econland has a Multiple Choice trade surplus. budget deficit. trade deficit. budget surplus.

Because capital is subject to diminishing returns, higher savings and investment do not lead to higherincome in the long-run.income in the short-run.growth in the long-run.growth in the short-run.
higherincome in the long-run
income in the short-run
growth in the long-run
growth in the short-run