Answer the following statements true (T) or false (F)

1. Do-it-yourself activities of people are a big part of the "underground economy".
2. When businesses have to install anti-pollution equipment to clean up their wastes, they are
adding to GDP.
3. GDP tends to understate economic welfare because it does not take into account increases in
leisure.
4. All activities included in GDP serve to enrich society.
5. Most activities in the so-called underground economy are illegal activities involving drugs or
gambling, for example.


1. FALSE
2. TRUE
3. TRUE
4. FALSE
5. FALSE

Economics

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