Suppose the European Union has a Nominal GDP of 20 trillion Euros, and their GDP deflator is 125. What is the European Union’s Real GDP?

Which of the following would shift the production possibilities frontier outward?

a. an increase in the size of the labor force b. more efficient use of existing resources and technology c. the government prints more money d. the end of a strike by a labor union e. society's desire to produce more of one of the goods

What accounts for specialization?

a. People specialize in the activity in which their opportunity costs are at a maximum. b. People specialize in the activity in which their opportunity costs are lowest. c. People do not specialize in any activity. d. People specialize in the activity that pays the highest wage. e. People specialize in the activity that they enjoy the most, no matter what the salary is.