Underground activities are not counted in GDP because
A) some underground activities are illegal and the government doesn't want to place, for instance, drug dealers on an equal footing with small businesses.
B) there are no written records of underground activities.
C) of a decision made in the 1930s and no one has gotten around to changing it yet.
D) although it is possible to accurately measure underground activities, it is harder than measuring above-ground activities because with the latter, one doesn't have to dig as deep.
B
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Economists do not think it is possible to compare the relative utility that two people get from consuming an additional unit of a particular good
Indicate whether the statement is true or false
If the value of your debt is decreasing over time, we know that:
A. the real interest rate is negative. B. inflation is zero. C. the real interest rate is positive. D. the real interest rate is zero.
As price rises, quantity demanded
A. rises. B. falls. C. remains the same.
A key assumption about the way firms behave is that they
A. maximize revenue. B. minimize costs. C. maximize profit. D. maximize market share.