Which of the following creates difficulties in making comparisons of real GDP across nations?
A. Each nation has a different population.
B. Nations produce different goods and services.
C. Relative prices differ sharply across countries.
D. Nations often have different languages.
Answer: C
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According to the Federal Reserve, household wealth in the United States fell by more than $11 trillion in 2008
Predict the effect this decrease in wealth had on the equilibrium real wage and level of employment, and use a graph to support your answer.
Suppose that a price-discriminating monopolist divides its market into two segments. If the firm sells its product for a price of $42 in the market segment where demand is relatively less elastic, the price in the market segment whose customers' demand is more elastic will be
a. $42 b. greater than $42 c. less than $42 d. less than marginal revenue in that market segment e. equal to marginal revenue in that market segment