If country A has a higher level of real GDP per person than ...

[shofmannx20]

If country A has a higher level of real GDP per person than country B, then people in Country A must enjoy a higher standard of economic welfare than people in Country B. Is this statement true or false and explain your answer.
 
  What will be an ideal response?

Question 2

A shift of the supply curve of oil raises the price from 60 a barrel to 75 a barrel and reduces the quantity demanded from 40 million to 20 million barrels a day. You can conclude that the
 
  A) demand for oil is elastic.
  B) demand for oil is inelastic.
  C) supply of oil is elastic.
  D) supply of oil is inelastic.

[harveenkau8139]

Answer to Question 1

The statement is false. Factors other than real GDP per person affect economic welfare. For instance, factors such as household production, underground production, leisure time, and environmental quality all affect economic welfare and all are omitted from real GDP per person. Although real GDP per person is an important factor in determining a country's economic welfare, it is not the only factor.

Answer to Question 2

A

[shofmannx20]

YES! Correct, THANKS for helping me on my review

[cassie_ragen]

Wow, this really help