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Exercice 1: Why do economists use real GDP rather than nominal GDP to assess ec

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Exercice 1:
Why do economists use real GDP rather than nominal GDP to assess economic well-being?
Exercice 2:
Discuss how the marginal and total utility differs between necessity and luxury goods?
Explain why the marginal utility is the same for both?
Exercice 3:
Assume France allocates more resources to the defense sector and produce more weapons than does Germany. Using the logic of production possibilities curve, show and demonstrates the consequences on the economies of both France and Germany
Exercice 4:
Assume that, in 1 day, France can produce wine at 21 bottles of wine and cheese at 6 Kilos per worker. Assume also that Switzerland can produce 13 bottles of wine per worker and 20 kilos of cheese per worker.
A. In terms of cheese, what is the opportunity cost of producing wine in each country?
B. Who has comparative advantage in producing cheese?
C. Which country should most likely specialize in cheese? In wine?
Exercice 5:
Refer to the (uploaded attache ?)figure to answer the following questions
A. Which point is unattainable ? why
B. Which point is inefficient? Why
C. What does moving from point d point to point a require?

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