What impact do you think that the movement of women from working in the household to working in the market has had on GDP? Why? Do you think that this points to a problem with GDP?
What will be an ideal response?
By moving to the market, women's work is now counted in GDP while it was excluded before. This does point to an important omission in GDP. However, household production has not been included in GDP because of the difficulty in finding prices for these activities.
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Total physical product shows what happens to the quantity of a firm’s output when that firm changes the quantity of an input in the production process.
Answer the following statement true (T) or false (F)
Collusion is easier to achieve and maintain in oligopoly when
a. there are many firms in the industry b. the firms' products are homogeneous c. the firms' cost structures are very different d. there are very weak barriers to entry e. the industry is located in the United States
Table 35.1CountryTons of SoybeansComputerChina100300United States150750Based on the information in Table 35.1, assume China and the United States have the same amount of resources with which to produce soybeans and computers and they produce no other goods. The opportunity cost of producing 1 ton of soybeans in the United States is
A. 1/3 of a computer. B. 3 computers. C. 1/5 of a computer. D. 5 computers.
A stock has a current annual dividend of $6.00 per year and it is expected to grow by 3% (0.03) a year. It is expected that two years from now the stock will sell for $90.00 a share. If the interest rate is 5% (0.05), the dividend-discount model predicts the stock's current price should be:
A. $101.30 B. $94.30 C. $94.90 D. $93.29