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
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If you were to start your own business, your implicit costs would include the:
A. opportunity cost of the time you spend working at the business. B. profit you earn over and above your normal profit. C. interest that you pay on your business loans. D. rent that you have paid in advance for the use of a building.
Three factors explain the risk structure of interest rates
A) liquidity, default risk, and the income tax treatment of a security. B) maturity, default risk, and the income tax treatment of a security. C) maturity, liquidity, and the income tax treatment of a security. D) maturity, default risk, and the liquidity of a security.
The Bureau of Labor Statistics' U-2 measure of joblessness includes job losers and job leavers
a. True b. False Indicate whether the statement is true or false
If, in the long run, people adjust their price expectation so that all prices and incomes move proportionately to an increase in the price level, then the long-run Phillips curve is vertical.
Answer the following statement true (T) or false (F)