GDP is an incomplete measure of social welfare because
a. GDP includes the services of prison guards, so an increase in GDP could mean an increase in crime
b. GDP does not include the value of volunteer activities, which may improve social welfare
c. an increase in output may increase pollution and traffic congestion
d. all of the above
Answer: d. all of the above
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According to the Monetarists a decrease in investment spending initially __________ unemployment so that the price level __________. The resulting __________ in the real money supply __________ spending
A) increases; rises; increase; decreases B) increases; falls; increase; increases C) increases; falls; increase; decreases D) decreases; rises; increase; increases
All of the following were important structural changes in American capitalism during the period 1960–95 except
(a) New technology in the form of automated (machine-guided) production processes (b) A capital-labor accord which allowed workers to share in productivity gains through wage increases, particularly during the 1950s and 1960s (c) An increase in self-sufficiency as the nation reduced its economic interdependence with other nations (d) A large and central role for government in directing the post-war economy
The argument first used to protect the U.S. steel industry from foreign competition over a century ago was the
a. diversity of industries argument b. antidumping argument c. national security argument d. retaliation argument e. infant industries argument
For the perfectly competitive firm, the marginal revenue is always
A. Increasing. B. Decreasing. C. Constant. D. Equal to average total cost.