Using hypothetical numbers, calculate the real GDP for Country A and then calculate the real GDP per capita for this country.
What will be an ideal response?
Hypothetical numbers will vary, but should be proportionally realistic. For example,
Country A uses a base year of 2010. So an index number of 100 is assigned to this
year. The nominal GDP for 2018 is $10,000 billion. The GDP deflator for this year is
108. $10,000 billion divided by 108 equals 92.59 billion. To get the real GDP for this
year in 2010 dollars, 92.59 is multiplied by 100, which equals $9,259 billion. Country A
has a population of 200 million. As a result, to get the real GDP per capita, $9,259
billion is divided by 200 million, which equals $46,296.
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Which of the following is TRUE regarding a perfectly competitive firm?
A) The firm can charge a lower price than its competitors and thereby sell more output and increase its profits. B) The firm always earns a normal profit. C) The firm's marginal revenue continually decreases. D) The firm's minimum efficient scale is small relative to the market demand.
The single most important reason for Canada's seeking a free trade agreement with the United States was to
A) ensure its access to the U.S. market. B) ensure its ability to join NAFTA. C) harmonize its environmental laws with the United States. D) avoid international outsourcing in low wage countries.