The GDP does not include the nonmarket economy. What is this, and why isn't it included?
What will be an ideal response?
The nonmarket economy includes the work of stay-at-home parents, volunteer work, and the like. Even though this is productive work and could theoretically belong in GDP, it is not included because it is impossible to measure accurately. The GDP also does not count the underground economy (illegal activities and cash-only transactions that avoid taxes) for the same reason.
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What is consumer surplus? How is it measured?
What will be an ideal response?
The slope of the total variable cost curve gives the average cost of production
Indicate whether the statement is true or false
The World Bank was created to help finance economic development in poor countries
a. True b. False Indicate whether the statement is true or false
The current exchange rate system is effectively a dirty float system
a. True b. False Indicate whether the statement is true or false