Which of the following statements about the underground economy is true?
A) Most transactions that occur in the underground economy are included in the calculation of GDP.
B) Excluding underground economy production from measured GDP causes errors in GDP growth estimates in the long run.
C) Income that is earned but not reported as income for tax purposes is included in the calculation of GDP.
D) The underground economy in developing countries amounts to less than 10% of measured GDP.
B
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An increase in the interest rate tends to increase the demand for loanable funds
a. True b. False
Given that the value of individual production of Carol and Tessie is zero, while their combined production is positive, we may conclude that:
a. any subset of the grand coalition can credibly threaten to block the coalition. b. the coalition is not individually rational. c. the core is empty. d. any allocation of payoffs from the coalition will lie within the core.
When goods that have intrinsic value are used as money, if their value as money falls, the good:
A. is still useful to people for other reasons. B. is no longer useful to people for other reasons. C. loses its intrinsic value. D. tends to gain in intrinsic value.
What could low productivity growth in a country suggest?
What will be an ideal response?