Which of the following would lead GDP to overstate economic welfare?
A) the existence of home-cooked meals
B) restaurant workers that under-report tip income
C) a self-employed CPA who takes a longer than normal vacation
D) electric utilities that switch to burning coal because of higher natural gas prices and thereby create more acid rain pollution
D
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Employing utilitarianism as a measure of the public interest _____
a. is inconsistent with the concept of a social welfare function b. attempts to minimize the problems associated with market failure c. attempts to maximize total utility in a society d. avoids comparing individual's utilities
Cecilia's Cafe is a monopolistic competitor. If Cecilia's is currently producing at the output level at which her average total cost is minimized and the cafe is earning an economic profit, then, in the long run, output will
a. decline and average total cost will increase b. decline and average total cost will decrease c. remain unchanged as Cecilia's strives to minimize costs d. increase and average total cost will be greater e. increase and average total cost will be smaller
Differences in human capital are likely to
a. be unrelated to wage rate differences across gender classifications, since both men and women are required to complete requirements for a high school diploma. b. be most helpful in explaining age discrimination, but unhelpful in explaining race discrimination. c. explain some of the differences in average wage rates across age classifications. d. explain all of the differences in average wage rates across gender classifications.
Why can't the government force a natural monopolist to produce the competitive output?
What will be an ideal response?