GDP excludes most items that are produced and sold illegally and most items that are produced and consumed at home because
a. the quality of these items is not high enough to contribute value to GDP.
b. measuring them is so difficult.
c. the government wants to discourage the production and consumption of these items.
d. these items are not reported on income tax forms.
b
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In the ISLM framework, a declining price level causes
A) interest rates to rise. B) income to fall. C) saving to rise. D) the LM curve to shift to the right.
The part of the balance of payments that records (generally) minor transactions such migrant's transfers, copyrights, and trademarks is the
A) capital account. B) current account. C) financial account. D) statistical discrepancy account.
If the government legalizes the purchase and sale of marijuana, the equilibrium quantity would _________ and the price would ________ if the supply of marijuana increased by _______ than the demand for marijuana increased as a result of the legalization
A) rise; rise; more B) fall; rise; more C) rise; fall; more D) rise; rise; less E) none of the above
The reason a corporation has retained earnings is to
A) pay unemployment taxes. B) make investments that will increase the value of the stock. C) avoid the double taxation of corporate profits. D) be able to make unemployment payments.