The correct option.

Question

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Answer 1

Question

Chapter 2, Problem 1QQ

To determine

The correct option.

Expert Solution & Answer

Answer to Problem 1QQ

Option ‘b’ is the correct answer.

Explanation of Solution

Option (b):

The nominal gross domestic product measures the value of economy’s total output at present price level and is a flow variable. This nominal GDP measures the output in a particular time period. A variable that measures with the reference of time period is called flow variable. Thus, option (b) is correct.

Option (a):

The nominal GDP measures the economic output in a particular time period, so it is a flow variable (a variable that measures with the reference of time period), not a stock variable (a variable that measurable at a point of time). Thus, option (a) is incorrect.

Option (c):

The value of the economy’s output measured at current price in a particular time period is called nominal GDP. Thus, option (c) is incorrect.

Option (d):

Nominal GDP measures the economic output at current price in a particular time period. Usually, it is for one year not based on a particular point of time. Thus, option (d) is incorrect.

Economics Concept Introduction

Nominal GDP (Gross Domestic Product): Nominal GDP measures the value of economy’s total output in a particular time period.

Flow variable: A flow variable is a variable that can be measured with reference to a period of time.

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Students have asked these similar questions

Wolfgang is a typical producer in a perfectly competitive piano industry (i.e., all other producers of pianos face the same costs as Wolfgang). The following production and cost data apply to the long run as well as the short run. Fixed costs (rent) are unrecoverable in the short run and are equal to $2400 per month. Variable costs consist of raw materials (wire, wood, plastic), which cost $1000 per piano, and the $40 per hour opportunity cost of Wolfgang's time. Wolfgang's production function is given in the table at right. Wolfgang will shut down if the price per piano is less than OA. $3000. B. $4000. O C. $5000. ○ D. None of the above. Pianos (Q) Hours (L) Raw Materials ( 0 0 0 1 100 1000 2 150 2000 3 240 3000 4 400 4000

P2 P₁ $ per unit Using the graph below, determine which statement is TRUE. MC1 SRATC₁ Q1 Q₂ MC2 SRATC2 LRAC ✓ LEA Quantity

Using the grapns below, wnicn snow the snort-run cost curves for 3 perfectly competitive firms in the same industry, determine whether the industry is in long-run equilibrium or not. Q Q Firm A QA MC ATC Output Firm B QB MC ATC Firm C MC ATC Output Output Qc If Firms A, B and C are in the same industry, is this industry in long-run equilibrium? ○ A. Yes, because P = MC = MR for each of the 3 firms. ○ B. No, because Firm A is not producing at a profit-maximizing level of output. ○ C. Yes, because all 3 firms are producing at their minimum average total cost. OD. The answer is uncertain since it's unknown whether the firms are producing at the minimum efficient scale or not. ○ E. No, because if the industry were in equilibrium, all 3 firms would be earning zero economic profits.

Answer 2

Question

Chapter 2, Problem 1QQ

To determine

The correct option.

Expert Solution & Answer

Answer to Problem 1QQ

Option ‘b’ is the correct answer.

Explanation of Solution

Option (b):

The nominal gross domestic product measures the value of economy’s total output at present price level and is a flow variable. This nominal GDP measures the output in a particular time period. A variable that measures with the reference of time period is called flow variable. Thus, option (b) is correct.

Option (a):

The nominal GDP measures the economic output in a particular time period, so it is a flow variable (a variable that measures with the reference of time period), not a stock variable (a variable that measurable at a point of time). Thus, option (a) is incorrect.

Option (c):

The value of the economy’s output measured at current price in a particular time period is called nominal GDP. Thus, option (c) is incorrect.

Option (d):

Nominal GDP measures the economic output at current price in a particular time period. Usually, it is for one year not based on a particular point of time. Thus, option (d) is incorrect.

Economics Concept Introduction

Nominal GDP (Gross Domestic Product): Nominal GDP measures the value of economy’s total output in a particular time period.

Flow variable: A flow variable is a variable that can be measured with reference to a period of time.

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Answer 3

Question

Chapter 2, Problem 1QQ

To determine

The correct option.

Expert Solution & Answer

Answer to Problem 1QQ

Option ‘b’ is the correct answer.

Explanation of Solution

Option (b):

The nominal gross domestic product measures the value of economy’s total output at present price level and is a flow variable. This nominal GDP measures the output in a particular time period. A variable that measures with the reference of time period is called flow variable. Thus, option (b) is correct.

Option (a):

The nominal GDP measures the economic output in a particular time period, so it is a flow variable (a variable that measures with the reference of time period), not a stock variable (a variable that measurable at a point of time). Thus, option (a) is incorrect.

Option (c):

The value of the economy’s output measured at current price in a particular time period is called nominal GDP. Thus, option (c) is incorrect.

Option (d):

Nominal GDP measures the economic output at current price in a particular time period. Usually, it is for one year not based on a particular point of time. Thus, option (d) is incorrect.

Economics Concept Introduction

Nominal GDP (Gross Domestic Product): Nominal GDP measures the value of economy’s total output in a particular time period.

Flow variable: A flow variable is a variable that can be measured with reference to a period of time.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 2, Problem 1QQ

To determine

The correct option.

Expert Solution & Answer

Answer to Problem 1QQ

Option ‘b’ is the correct answer.

Explanation of Solution

Option (b):

The nominal gross domestic product measures the value of economy’s total output at present price level and is a flow variable. This nominal GDP measures the output in a particular time period. A variable that measures with the reference of time period is called flow variable. Thus, option (b) is correct.

Option (a):

The nominal GDP measures the economic output in a particular time period, so it is a flow variable (a variable that measures with the reference of time period), not a stock variable (a variable that measurable at a point of time). Thus, option (a) is incorrect.

Option (c):

The value of the economy’s output measured at current price in a particular time period is called nominal GDP. Thus, option (c) is incorrect.

Option (d):

Nominal GDP measures the economic output at current price in a particular time period. Usually, it is for one year not based on a particular point of time. Thus, option (d) is incorrect.

Economics Concept Introduction

Nominal GDP (Gross Domestic Product): Nominal GDP measures the value of economy’s total output in a particular time period.

Flow variable: A flow variable is a variable that can be measured with reference to a period of time.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 2, Problem 1QQ

To determine

The correct option.

Expert Solution & Answer

Answer to Problem 1QQ

Option ‘b’ is the correct answer.

Explanation of Solution

Option (b):

The nominal gross domestic product measures the value of economy’s total output at present price level and is a flow variable. This nominal GDP measures the output in a particular time period. A variable that measures with the reference of time period is called flow variable. Thus, option (b) is correct.

Option (a):

The nominal GDP measures the economic output in a particular time period, so it is a flow variable (a variable that measures with the reference of time period), not a stock variable (a variable that measurable at a point of time). Thus, option (a) is incorrect.

Option (c):

The value of the economy’s output measured at current price in a particular time period is called nominal GDP. Thus, option (c) is incorrect.

Option (d):

Nominal GDP measures the economic output at current price in a particular time period. Usually, it is for one year not based on a particular point of time. Thus, option (d) is incorrect.

Economics Concept Introduction

Nominal GDP (Gross Domestic Product): Nominal GDP measures the value of economy’s total output in a particular time period.

Flow variable: A flow variable is a variable that can be measured with reference to a period of time.

Answer 6

Chapter 2, Problem 1QQ

To determine

The correct option.

Expert Solution & Answer

Answer to Problem 1QQ

Option ‘b’ is the correct answer.

Explanation of Solution

Option (b):

The nominal gross domestic product measures the value of economy’s total output at present price level and is a flow variable. This nominal GDP measures the output in a particular time period. A variable that measures with the reference of time period is called flow variable. Thus, option (b) is correct.

Option (a):

The nominal GDP measures the economic output in a particular time period, so it is a flow variable (a variable that measures with the reference of time period), not a stock variable (a variable that measurable at a point of time). Thus, option (a) is incorrect.

Option (c):

The value of the economy’s output measured at current price in a particular time period is called nominal GDP. Thus, option (c) is incorrect.

Option (d):

Nominal GDP measures the economic output at current price in a particular time period. Usually, it is for one year not based on a particular point of time. Thus, option (d) is incorrect.

Economics Concept Introduction

Nominal GDP (Gross Domestic Product): Nominal GDP measures the value of economy’s total output in a particular time period.

Flow variable: A flow variable is a variable that can be measured with reference to a period of time.

Answer 7

Chapter 2, Problem 1QQ

To determine

The correct option.

Answer 8

Expert Solution & Answer

Answer to Problem 1QQ

Option ‘b’ is the correct answer.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Option (b):

The nominal gross domestic product measures the value of economy’s total output at present price level and is a flow variable. This nominal GDP measures the output in a particular time period. A variable that measures with the reference of time period is called flow variable. Thus, option (b) is correct.

Option (a):

The nominal GDP measures the economic output in a particular time period, so it is a flow variable (a variable that measures with the reference of time period), not a stock variable (a variable that measurable at a point of time). Thus, option (a) is incorrect.

Option (c):

The value of the economy’s output measured at current price in a particular time period is called nominal GDP. Thus, option (c) is incorrect.

Option (d):

Nominal GDP measures the economic output at current price in a particular time period. Usually, it is for one year not based on a particular point of time. Thus, option (d) is incorrect.