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Nominal GDP is not used to determine recessions because inflation can disguise the occurrence of recessions.

Suppose I told you, “The quantity demanded of chocolate goes up when the price of chocolate goes down.” Which of the following is an assumption I am making?

According to the law of increasing opportunity costs,

Sam works on an assembly line at a car factory. When Sam is doing this job, he’s an example of an entrepreneur.

Suppose I told you, “The quantity demanded of chocolate goes up when the price of chocolate goes down.” Which of the following is an assumption I am making?

Per capita GDP will rise if GDP

Suppose both the demand for and supply of salsa increase (although not necessarily by the same amount). What can we conclude about changes in the price and quantity of salsa?

Sam works on an assembly line at a car factory. When Sam is doing this job, he’s an example of an entrepreneur.

Per capita GDP will rise if GDP

Any imperfection in the market mechanism that prevents optimal outcomes is known as