Which of the following statements is false?
A) Real GDP is the quantity of goods and services valued in base-year prices or base-year dollars.
B) "Aggregate demand" and the "quantity demanded of Real GDP" are the same.
C) According to the aggregate demand (AD) curve, the quantity demanded of Real GDP and the price level are inversely related.
D) Real GDP is denominated in current-year prices.
E) b and d
E
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Consider two individuals, Nigel and Mia, who produce hair pins and bandanas. Nigel's and Mia's hourly productivity are shown in Table 3.3. Which of the following is TRUE?
A) Nigel has both an absolute and comparative advantage in bandana production. B) Nigel has both an absolute and comparative advantage in hair pin production. C) Nigel has neither an absolute nor comparative advantage in hair pin production. D) Nigel has neither an absolute nor a comparative advantage in bandana production.
In the above table, the average fixed cost at 4 units of output is
A) $1.00. B) $4.50. C) $4.70. D) $4.80.