ECON MACRO
5th Edition
ISBN: 9781337000529
Author: William A. McEachern
Publisher: Cengage Learning
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Chapter 1, Problem 4.7P
To determine
The pitfalls in economic thinking & identifying fallacy
Introduction:
In order to understand the logical reason behind the causes and the effects of related case along with it relating it with an underlying assumption
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India and China are the two major economies in the Asian continent. Both countries have a trillion-dollar GDP. Suppose to calculate the GDP of the year 2021, India has decided to use the prices and quantities of the year 2021 whereas China decided to use the prices of 2020 and quantities of 2021. You are required to answer the following.
a) What the strategy adopted by India to calculate the GDP of the country.
b) What the strategy adopted by China to calculate the GDP of the country.
c) Which strategy is better? Why?
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Choose the statement that does not describe Microeconomics.
a.
The effect of increasing the money supply on inflation.
b.
The purchasing decisions that an individual consumer makes.
c.
All of these
d.
The effect of an increase in the Tax on cigarettes on cigarette sales
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: “The document showing the income and expenses of the state together is called X.” In his statement, which of the following is most appropriate for X?
a)
Budget
B)
national income
NS)
national income per capita
D)
Marginal revenue
TO)
purchasing power parity
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