Which of the following observations regarding economic goods is incorrect?
a. They are limited in supply.
b. They are desirable.
c. They are solely low-priced essential goods.
d. They are scarce goods created from scarce resources
Question 2
Suppose that in 2011 nominal GDP increased and real GDP decreased relative to the year 2010 . It can be concluded that:
a. the economy experienced inflation and the total production of goods and services increased.
b. the economy experienced deflation and the total production of goods and services increased.
c. the economy experienced inflation and the total production of goods and services decreased.
d. the economy experienced deflation and the total production of goods and services decreased.
