The GDP deflator in year 2 is 105, using year 1 as the base year. This means that, on average, the cost of goods and services is
A) 5% higher in year 2 than in year 1. B) 105% higher in year 1 than in year 2.
C) 105% higher in year 2 than in year 1. D) 5% higher in year 1 than in year 2.
A
Economics
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Which one of the following is not considered a financial intermediary?
A) a bank B) a pension fund C) an insurance company D) a credit counselor
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Which of the following best defines consumer surplus?
a. the amount that individuals actually paid, minus the amount that they would have been willing to pay b. the amount that a seller is paid for a good minus the seller’s actual cost c. the amount that individuals would have been willing to pay, minus the amount that they actually paid d. when it is impossible to improve the situation of one party without imposing a cost on another
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