If Nominal GDP for a Particular Year Is $4 Trillion

question 14

Multiple Choice

If nominal GDP for a particular year is $4 trillion and real GDP for that year is $5 trillion,then the GDP price index for that year is

• A)1.25
• B)20
• C)25
• D)80
• E)125

Comprehend the steps involved in funding public programs.

Recognize the importance of collaborations and partnerships between agencies.

Understand the influence of personal ideology on stakeholder's policy preferences.

Distinguish between not-for-profit and for-profit agencies.

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Definitions:

Economic Profit

The profit a firm makes after deducting both its explicit (out-of-pocket) and implicit (opportunity) costs, reflecting the total financial gain that exceeds the firm's total costs.

Demand Schedule

A table that shows the quantity of a good or service that consumers are willing and able to purchase at various price points, at a specific time.

Industry Entry

The process by which a business or company begins to operate in a specific industry.

Monopolistically Competitive

Refers to a market structure where many firms sell products that are similar but not identical, allowing them some power to set prices due to product differentiation.