The GDP figures fail to count labor services and other household production. Once this omission is taken into account,
What will be an ideal response?
the income differences between the high and low income countries are still huge.
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"Now that Terrance paints the broad surfaces and I do the trim work, we can paint a house in three-fourths the time that it took for each of us to do both." This statement most clearly reflects
a. the importance of secondary effects. b. the fallacy of composition. c. the law of comparative advantage. d. behavior inconsistent with economizing.
The marginal propensity to consume is:
A. the change in consumer spending minus the change in aggregate disposable income. B. the change in consumer spending divided by the change in aggregate disposable income. C. the proportion of total disposable income that the average family consumes. D. increasing if the marginal propensity to save is increasing.
Someone who is risk-averse is likely to:
A. invest in a start-up company instead of putting her money under her mattress. B. buy company stock instead of putting money in a savings account. C. buy a government bond instead of a stock. D. All of these statements are true.
A British waste management company acquired two other companies that specialized in disposal of hazardous wastes even though the two companies were losing money. Planning and regulatory requirements in the United Kingdom make it difficult for firms to establish new hazardous waste landfills, and the combined companies would control most hazardous waste landfills in some parts of the country. How do the planning and regulatory requirements affect the market for hazardous waste?
A. They create a burden on the company, and so it probably will lobby to repeal them. B. They help the merged companies because it will be expensive for other firms to enter the market to compete with them. C. They make the market for hazardous waste disposal into a monopolistically competitive market. D. They make the market for hazardous waste disposal into a contestable market.