When It Is Either Not Possible or Unethical to Manipulate

question 27

Multiple Choice

When it is either not possible or unethical to manipulate an independent variable, which research method would be optimal?

• A)operational definition
• B)experimentation
• C)quasi-experimentation
• D)inferring

Distinguish between nominal GDP, real GDP, inflation, and deflation.

Understand the significance of the GDP deflator and its role in adjusting nominal GDP to real GDP.

Recognize the components of GDP (consumption, investment, government purchases, net exports) and their impact on the economy.

Identify what is included and excluded in GDP calculations.

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Definitions:

Demand and Supply

Fundamental economic concepts that describe the amount of a product or service available for purchase (supply) and the desire of buyers for it (demand), influencing price and market equilibrium.

Market Failure

A situation where the allocation of goods and services by a free market is not efficient, often leading to a net social welfare loss.

Allocated Efficiently

A resource allocation where resources are distributed in a way that maximizes the net benefit to society or achieves a desired outcome effectively.

Social Costs

The total cost to society, including both private costs borne by individuals and external costs affecting others not directly involved in a transaction.