Question

Which of the following is the best example of a perfectly competitive market?

a. disk operating system software

b. milk

c. automobiles

d. postal service

e. breakfast cereals

Which of the following is an example of a stock variable?

a. The amount of cereal a child consumes each month

b. The amount of cereal in a person's pantry

c. The amount of cereal a person buys each week

d. The amount of cereal produced each day

e. None of these are stock variables

During the 1990s and the first decade of the 2000s

a. the U.S. inflation rate averaged about 8 percent per year

b. the U.S. inflation rate averaged less than 3 percent per year

c. the U.S. economy consistently experienced deflation (a falling price level)

d. polls have shown that U.S. citizens are more concerned about inflation than any other national problem

e. the U.S. inflation rate reached double digits (10 percent or higher)

"Output fell 2 percent last quarter" is an example of a positive economic statement.

a. True

b. False

If we included intermediate goods in the calculation of GDP,

a. any measurement problems would be offset by including the sale of new goods

b. any measurement problems would be offset by including the final goods as well

c. we would be accurately measuring GDP

d. we would be underestimating GDP

e. we would be overestimating GDP