A Time- Series Graph Displaying Real GDP from 1950 to 2008

question 432

Multiple Choice

A time- series graph displaying real GDP from 1950 to 2008 has a positive trend. It is likely that real GDP

• A) rose every year from 1950 to 2008.
• B) was lower in 1950 than in 2008.
• C) was higher in 1950 than in 2008.
• D) fell every year from 1950 to 2008.

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Definitions:

Profit Opportunities

Situations where businesses can generate higher returns on investment than the market average.

Efficient Economy

An economy where resources are allocated in the most efficient way possible, maximizing the production of goods and services without wasting resources.

Economic Output

The total value of all goods and services produced within an economy over a specific time period.

Potentially Efficient

A condition where resources could be allocated in a way that maximizes the net benefits to society, although it may not necessarily be achieved.