The GDP Deflator in Year 2 Is 95 Using Year

question 155

Multiple Choice

The GDP deflator in year 2 is 95 using year 1 as a base year. This means that, on average, the price of goods and services is

• A) 105% higher in year 2 than in year 1.
• B) 5% higher in year 2 than in year 1.
• C) 5% higher in year 1 than in year 2.
• D) 105% higher in year 1 than in year 2.

Acknowledge the importance of properly documenting interviews and investigations.

Understand the rules and applications of hearsay in court evidence.

Recognize the necessity of evidence authentication and laying a proper foundation before admission in court.

Differentiate between friendly and hostile witnesses and master the approaches to interviewing them.

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Definitions:

Marginal Revenue

The additional revenue that a firm receives from selling one more unit of a good or service.

Average Total Cost

The total cost of production divided by the total output or quantity produced.

Monopolistically Competitive Firm

A firm that operates in a market with many competitors, each offering a slightly different product.

Profit-Maximizing Quantity

The level of production at which a firm achieves the highest possible profit, where marginal revenue equals marginal cost.