Only three goods are produced in an economy in the following amounts: A = 10, B = 30, C = 5
The current year per unit prices of these three goods are A = $2, B = $3, and C = $1. (Advanced analysis) Refer to the information. If the per unit prices of the three goods were each $1 in a base year used to construct a GDP price index, then real GDP in the current year is:
A. $110.
B. $115.
C. $45.
D. $160.
C. $45.
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An example of the principal-agent problem is when
A) managers try to cope with employees that are inefficient. B) proprietors don't receive any money payment for their entrepreneurial skills. C) managers devise penalties that eliminate employee waste. D) managers devise incentives that encourage employees to act in the owner's behalf.
The repurchase agreement market was an important ingredient of the Great Recession because:
a. It is the market on which mortgages are repurchased, and, due to the Great Recession, this market dried up. b. It is the market on which many companies finance their daily working capital needs and, due to the Great Recession, this market dried up. c. Many repurchase agreements were with subprime mortgages, and few investors would purchase them. d. All of the above.