Not including transactions from the underground economy will tend to ________ GDP, and not including environmental changes caused by pollution will tend to ________ GDP.
A. overvalue; undervalue
B. undervalue; overvalue
C. overvalue; overvalue
D. undervalue; undervalue
Answer: B
You might also like to view...
An economic model is a complex version of reality used to analyze real-world economic situations
Indicate whether the statement is true or false
Suppose the population (age 16 and over) of Guatemala is 100 million; 5 million are unemployed, and 70 million hold jobs. The employment/population ratio of Guatemala is
a. 5 percent. b. 65 percent. c. 70 percent. d. 85 percent.
Suppose a profit-maximizing firm in a competitive market produces rubber bands. When the market price for rubber bands rises above the minimum of its average variable cost, but still lies below the minimum of average total cost, in the short run the firm will
a. experience losses but will continue to produce rubber bands. b. shut down. c. earn both economic and accounting profits. d. raise the price of its product.
Consider a barter situation where you have pens and you want pencils. To achieve your objective there must be a(n):
A. use of capital goods. B. coincidence of wants. C. entry and exit from the market. D. large number of sellers.