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3 years ago

Which statement represents most correctly the relationship between nominal GDP and real GDP?

Business

1 answer:

Nady [450]3 years ago

8 0

Answer:

The answer is: C) Nominal GDP measures current production using current prices, whereas real GDP measures current production using base-year prices.

Explanation:

Nominal GDP measures the production of total finished products and services within a country during a particular period using the current prices of the products and services. Real GDP measures the production of total finished products and services within a country during a particular period using base-year prices of the products and services.

Nominal GDP doesn't take in account inflation, while real GDP is adjusted by inflation. Nominal GDP is also higher than the real GDP since recent prices are higher than the base-year prices (due to inflation). Real GDP can be used to compare the economy's evolution over periods of time.

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"Bubba is a shrimp fisherman who used $2,000 from his personal savings account to buy a boat and equipment for his shrimp busine

Katyanochek1 [597]

Options:

A. $20

B. $200

C. $40

D. $400

Answer:C. $40

Explanation: Opportunity cost is a term used in Economics to describe the value of the next most profitable alternative of this an investor puts his or her resources into,in this case the opportunity cost for Bubba is the percentage of the interest which Bubba earned from the interest.

Opportunity cost for Bubba can be calculated as follows

(2%/100)* $2,000=$40.

Opportunity cost helps economists to ensure that resources are effectively put to use.

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3 years ago

Competition between the firms leads to greater marketing expenses. <br><br> a. True<br> b. False

ss7ja [257]

True. With competition in a market, firms have to compete to stay ahead of the others

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3 years ago

Current trends suggest that early internationalizing firms will ________. be unable to sustain the rigors of international trade

finlep [7]

Answer:

Continue to

Explanation:

Internalization is a process to increase the involvement of international markets.

As more and more business continues to grow the more rigorous internalization become the more trade takes place between the markets and the entrepreneurial efforts of small firms tend to eliminate the MNE concept to maintain high-quality levels while adapting to those of the other cultures and markets.

Certain trade theories have been, made which highlight this aspect like the Absolute cost advantage, Comparative cost advantage, and the Gravity model of trade.

8 0

3 years ago

Read 2 more answers

What is economic unity

NemiM [27]

Answer:

the state of different areas or groups being joined together to form a single country or organization.

Explanation:

4 0

3 years ago

A manufacturer of clothing apparel currently sells its products at Neiman Marcus and Dillard's. A new survey shows that a majori

GaryK [48]

Answer:

This manufacturer should have to take the option of dropping Dillard's and including Macy's and Saks Fifth Avenue.

Explanation:

When manufacturers produce, they do so for the sake of gains and profits. A larger market provides bigger profits compared to a smaller one.

This question tells us that this manufacturer has a greater number of customers looking to get there products at Neiman Marcus, Macy's, and Saks Fifth Avenue. So since these places would provide him a bigger market, so he should partner with these retail markets (Neiman Marcus, Macy's, and Saks Fifth Avenue) and drop the market with just few customers (dillards).

7 0

3 years ago