The advantage of using real GDP over nominal GDP is that:
A) it can be compared over time.
B) it takes into account the distribution of income.
C) it takes into account changes in ruling political party.
D) it is easier to calculate.
A
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Each member in a group might do what's best for himself or herself instead of behaving in a way that optimizes the well-being of the entire grou
A) irrational behavior. B) free riding. C) Pareto inefficiency. D) disequilibrium.
The invisible hand principle indicates that competitive markets can help promote the efficient use of resources
a. only if buyers and sellers really care, personally, about economic efficiency. b. even when each market participant cares only about their own self interest rather than about the overall efficiency of resource use. c. even if business firms fail to produce goods efficiently. d. if, and only if, businesses recognize their social obligation to keep costs low and use resources wisely.