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24.   A measure of GDP in which quantities produced are valued at current-year prices is called:...

24.   A measure of GDP in which quantities produced are valued at current-year prices is called:

A. real GDP.

B. nominal GDP.

C. base GDP.

D. physical GDP.

25. In the base year real GDP ______ nominal GDP.

A. is greater than

B. is less than

C. is equal to

D. could be greater or less than

28. Bob's Barber Shop cut 3,000 heads of hair in the year 2005 and 3,100 in the year 2006. The price of a hair cut was $7 in 2005 and $8 in 2006. If the year 2005 is the base year, what was Bob's contribution to real GDP in the year 2005?

A. $21,000

B. $21,700

C. $24,000

D. $24,800

29. Real GDP is not a perfect measure of economic well being because it excludes the value of all of the following EXCEPT:

A. leisure time.

B. goods and services available in the market economy.

C. goods and services produced in the nonmarket economy.

D. goods and services produced in the underground economy.

30. GDP excludes important factors that affect people's well being, such as the value of:

A. unpaid housekeeping services.

B. government purchases of goods and services.

C. services purchased by households.

D. goods produced domestically, but sold to foreigners.

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