Legalizing all forms of illegal activities would
A. reduce both the underground economy and measured GDP.
B. increase the size of the underground economy and reduce measured GDP.
C. reduce the size of the underground economy and increase measured GDP.
D. reduce measured GDP.
Answer: C
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Under current WTO rules, a country can adopt
A) any environmental standard it chooses, even if it discriminates against foreign producers. B) only the same environmental standards as its immediate geographic neighbors. C) any environmental standard it chooses as long as it does not discriminate against foreign producers. D) only WTO-approved environmental standards.
The value of the put option rises when the underlying asset
A) experiences price increases. B) experiences price declines. C) experiences reduced volatility. D) has a relatively short maturity.
Trish grows oregano in her backyard to use in her homemade pesto sauce. How is this gardening included in GDP?
a. It is included in real GDP. b. It is included in nominal GDP. c. It is not included in GDP. d. It is included as an intermediate good.
Who has a greater opportunity cost of leisure — a president of a major corporation or a babysitter?