Household production is not measured in the GDP
Indicate whether the statement is true or false
TRUE
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Bobby is offered two fulltime jobs. In the first job, as a salesperson, he has a 50 percent chance to make $2,000 a month and a 50 percent chance to make $10,000 a month. The second job, as a construction worker, pays $4,500 a month with certainty
Bobby's utility of wealth curve is shown in the figure above. Bobby will take the ________ job because his expected ________ from this job is greater. A) first; utility B) second; utility C) second; income D) first; income
In the short run, monopolistically competitive firms behave like ________, but in the long run, the profit of a firm is similar to that of ________.
A. monopolies; oligopolies B. oligopolies; perfectly competitive firms C. monopolies; perfectly competitive firms D. perfectly competitive firms; monopolies
Suppose the most you would be willing to pay for a plane ticket home is $250. If you buy one for $175, then your economic surplus is:
A. $0. B. $75. C. $250. D. $175.
What is the best definition of quality bias?
a. failure to capture the savings that households enjoy when they change their spending in response to relative price changes b. failure to account for price changes to an item that result from product improvement c. overstating of the prices some buyers actually pay for goods from cheaper retail outlets d. failure to include new products into the Consumer Price Index until they become commonplace