Assume the Table Has Recorded the Total Output and Prices

question 91

Multiple Choice

Assume the table has recorded the total output and prices of the only two goods produced. Looking at the changes in real GDP and nominal GDP from 2001 to 2002, we can conclude:

• A) output and prices increased.
• B) only output increased.
• C) only prices increased.
• D) output increased, but prices decreased.

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Definitions:

Production Innovations

New and improved methods or products that increase efficiency or quality in manufacturing or service delivery.

Economic Profits

Profits exceeding the opportunity costs of a business, indicating gains beyond the next best alternative use of its resources.

Monopoly Power

The ability of a single seller or company to control the market for a particular good or service, allowing them to set prices above competitive levels.

Scarce Resources

Goods that are limited in availability and cannot meet all the demands of the consumers.