Even if GDP included these types of production, why would it still be an imperfect measure of economic well-being?
A. GDP is not adjusted for crime or other social problems
B. The value of leisure is not included in GDP
C. GDP is not adjusted for pollution and it does not account for unequal income distribution
D. All of the above
E. A and C only
Answer: D. All of the above
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Suppose Jack and Kate are at the town fair and are choosing which game to play. The first game has a bag with four marbles in it-1 red marble and 3 blue ones. The player draws one marble from the bag; if it is red, they win $20 and if it is blue, they win $1. The second game has a bag with 10 marbles in it-1 red, 4 blue, and 5 green. The player draws one marble from the bag; if it is red, they win $20; if it is blue, they win $5; and if it is green, they win $1. Both games cost $5 to play. If Jack only cares about expected value, and not risk, he should decide to play a game if:
A. the expected value of the payoff is higher than the expected value of the payoff in the other game. B. the expected value of the payoff is lower than the price to play the game. C. the expected value of the payoff is higher than the price to play the game. D. the expected value of the payoff is double the price to play the game.
If taxation becomes more progressive, the built-in stability in the economy will increase.
Answer the following statement true (T) or false (F)
Which of the following would NOT be considered a capability in the capabilities approach?
A. To live free of the fear of violence B. To be able to find secure and meaningful work C. To be able to afford to travel freely D. All of these are considered capabilities
One major reason why the purchasing power parity theory does not always predict exchange rates accurately is that the theory focuses on trade in
A. monies. B. goods and services. C. stocks and bonds. D. physical assets.