An Increase in Nominal GDP Could Result from an Increase

question 47

Multiple Choice

An increase in nominal GDP could result from an increase in i. production.
Ii) prices.
Iii) taxes and subsidies.

• A) i only
• B) ii only
• C) i and ii
• D) i and iii
• E) i, ii, and iii

---

Definitions:

Pharmaceutical Company

A commercial business that researches, develops, makes, and sells pharmaceutical drugs and treatments.

Average Revenue

The total revenue divided by the quantity sold, representing the amount of revenue generated per unit of output sold.

Marginal Revenue

The increase in revenue that results from the sale of one additional unit of a product or service.

Natural Monopoly

A market situation where due to high fixed costs or unique production processes, one provider can supply a product or service more efficiently than multiple competitors.