The major difference between nominal GDP and real GDP is that
A. real GDP is the absolute value of goods and services and nominal GDP is a relative value.
B. real GDP refers to products made in the United States and nominal GDP refers to both exports and imports.
C. nominal GDP is the market value and real GDP has been adjusted for inflation.
D. real GDP is a relative value and nominal GDP is an absolute value.
Answer: C
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To maximize profit a perfectly competitive firm supplies a good up to the point at which
A. the marginal revenue is higher than the marginal cost. B. the marginal cost of producing the good is zero. C. the average revenue equals average cost. D. the price of the good equals marginal cost.
The marginal utility per dollar you are spending on iTunes music downloads is less than the marginal utility per dollar you are spending on Red Bull. According to the rule of equal marginal utility per dollar? spent, what can you do to increase your total utility from consumption of music downloads and Red? Bull?