In Recent History, Real GDP Has Risen Less Rapidly Than

question 123

Multiple Choice

In recent history, real GDP has risen less rapidly than nominal GDP. This is because

• A)the general price level fell.
• B)capital increased.
• C)the goal of zero population growth has been reached.
• D)the general price level rose.
• E)the level of population rose.

Analyze the impact of entry and exit of firms on long-run equilibrium in perfectly competitive markets.

Describe the characteristics of the demand curve facing a perfectly competitive firm.

Understand the significance of economic profits and losses in short-run and long-run equilibrium.

Discern the factors leading to the condition of zero economic profits in the long run for firms in perfect competition.

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Definitions:

Stock Dividend

A distribution of additional shares of a company's stock to its shareholders, usually in lieu of cash dividends.

Cash Dividends

Direct payments of profit made to shareholders, proportionate to the number of shares they own.

Treasury Stock

Shares that were first put into circulation by a company and then taken back, diminishing the quantity of shares actively traded on the market.

Small Stock Dividend

A dividend paid in the form of additional shares of the issuing corporation, typically representing less than a 25% increase of the outstanding shares.