An economy recently reported nominal GDP of 3 trillion euro and a GDP deflator of 200 . What was real GDP?
a. 1.5 trillion euro, and real GDP is a better gauge of economic activity than nominal GDP.
b. 1.5 trillion euro, but nominal GDP is a better gauge of economic activity than real GDP.
c. 6 trillion euro, and real GDP is a better gauge of economic activity than nominal GDP.
d. 6 trillion euro, but nominal GDP is a better gauge of economic activity than real GDP.
a
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Some economists have argued that path dependence and switching costs can lead to market failure. Which of the following is an example of this argument?
A) VHS video recorders became more popular with consumers than Sony Betamax recorders even though the Betamax recorders embodied a superior technology. B) A consumer who won a lottery for a Super Bowl ticket refuses to sell it for $3,000 even though he would not have paid $3,000 for a ticket if he had not won the lottery. C) Costly celebrity endorsements lead many consumers to buy a product even though it is more expensive or less effective than a product that is not endorsed by a celebrity. D) While playing the ultimate game, an allocator decides to share $20 equally with a recipient rather than keep the $20 for herself.
One difference between economic and social regulation is that economic regulation usually pertains to a specific industry, whereas social regulation applies to most if not all industries
a. True b. False Indicate whether the statement is true or false