Suppose a woman has an exterminator treat her house every month but she then marries the exterminator who now performs the service for free. As a result, GDP would
a. increase
b. decrease
c. not change, because services are not counted in the first place
d. not change, as the activity occurred monthly
e. not change, because the activity is an intermediate good or service
B
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A product charge is
a. a fee added to the price of a pollution-generating product based on its contribution to pollution b. the same as an effluent charge c. a fee imposed on the actual release of pollution, typically as a tax d. none of the above
The ways to address agency costs include all EXCEPT
a. running background checks on prospective employees b. requiring employees to punch time clocks c. instituting longer work days d. replacing closed offices with cubical office spaces
Goods X and Y are complementary goods. A decrease in price of good X has occurred. In the market for good Y, this will lead to
A. an increase in price and a decrease in quantity. B. an increase in price and an increase in quantity. C. a decrease in price and a decrease in quantity. D. a decrease in price and an increase in quantity.
The demand curve faced by a monopolistic ally competitive firm:
A. Is more elastic than the monopolist's demand curve B. Is less elastic than the monopolist's demand curve C. Will shift outward as new firms enter the industry D. Is more elastic than the demand curve faced by the purely competitive firm