Which of the following is a problem with using real GDP as a measure of economic well-being?
a. It fails to measure the value of leisure
b. It fails to measure the underground economy.
c. It does not factor in externalities.
d. all of the above
d
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A nominal value is measured:
A. by indexing. B. using the consumer price index. C. in terms of current dollar value. D. in physical terms.
Along a production possibilities curve showing capital and consumption goods production, which of the following pairs are being held fixed?
A. Unemployment and capital goods production. B. Number of resources and technology. C. Composition of the economy's output and number of resources. D. Capital and consumption goods production.
If price of a good rises, what happens to the demand for that good, all other things held constant?
A. The demand increases. B. The demand decreases. C. The demand does not change. D. The outcome depends upon the supply of the good.
Refer to Figure 4-3. If the market price is $3.00, what is the consumer surplus on the first ice cream cone?
A) $0.50 B) $1.00 C) $5.50 D) $9.00