Assume a DVC has a real per capita output of $1,000 as compared to $20,000 for an IAC. If both nations realize a 4 percent growth of their real per capita outputs, after one year the absolute real per capita output gap will:

Which of the following items serve as a unit of account?

I. $100 cash II. checkable deposits III. an original Picasso painting IV. a $1,000 corporate bond that you own A) I only B) I and II C) I, II, and III D) I, II, and IV E) I, II, III, and IV

Which of the following is not a reason why marketable permits may fail to achieve efficiency?

a. Some firms can reduce emissions at a lower cost than other firms. b. A market with a small number of buyers and sellers. c. Imperfect information exists on the value of a permit. d. There are concerns about the value of permits in the future.