Multiple Choice
When someone stops mowing his lawn and hires a teenager for cash that is unreported, what happens to GDP?
A) It rises because a nonmarket activity is now a legal market activity.
B) It rises because GDP includes the value of the additional leisure time that dad gets by hiring a noncitizen.
C) It falls because production by noncitizens is counted in their home country, not in the United States.
D) It probably does not change. Production has shifted from nonmarket to the underground economy and neither is counted.
Correct Answer:
Verified
Correct Answer:
Verified
Q30: Aggregate accounting:<br>A)is used primarily by microeconomists.<br>B)provides a
Q31: Per capita gross domestic product (GDP)in the
Q32: The key to the equality of output
Q33: The price index that measures the average
Q34: If depreciation is zero, then net domestic
Q36: Suppose nominal GDP is $14 trillion and
Q37: Net domestic product equals:<br>A)consumption + investment +
Q38: Real GDP would increase by 3 percent
Q39: The genuine progress indicator provides a measure
Q40: What is real GDP?