Resources are allocated most efficiently across the country and around the world when traders specialize in producing those goods for which they have a comparative advantage, and trade for the other things that they need

Suppose Barbara looks out in the morning and sees a clear sky so decides that a picnic for lunch is a good idea. Last night the weather forecast included a 100% chance of rain by midday but Barbara did not watch the local news program

Is Barbara's prediction of good weather at lunch time rational? Why or why not?

The measure of GDP which effectively updates the prices for the base year each year and reduces the errors from changes in relative prices and the introduction of new goods and services is called the

A) nominal GDP. B) real GDP. C) deflated GDP. D) chain-weighted GDP.