GDP tends to underestimate the productive activity in the economy because it excludes the value of output from:
A. Public transfer payments to households
B. The consumption of fixed capital
C. The underground economy
D. Intermediate goods
C. The underground economy
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One difference between monopolistic competition and pure competition is that
A. products may be homogeneous in monopolistic competition. B. there is some control over price in monopolistic competition. C. firms differentiate their products in pure competition. D. monopolistic competition has significant barriers to entry.
What are the two views of fairness? How does each view redistribution of income from the rich to the poor?
What will be an ideal response?
Oligopoly is an industry with a small number of firms producing homogeneous or differentiated goods with minimal barriers to entry
a. True b. False Indicate whether the statement is true or false
Which tax system requires all taxpayers to pay the same percentage of their income in taxes?
a. a regressive tax b. a proportional tax c. a progressive tax d. a horizontal equity tax