Officials have estimated the size of the U.S. underground economy to be approximately
a. 6 to 8 percent of GDP
b. about $5 trillion
c. 50 percent of GDP
d. $60-80 billion
e. about $1 trillion
E
You might also like to view...
Abe owns a dog; the dog's barking annoys Abe's neighbor, Jenny. Suppose that the benefit of owning the dog is worth $200 to Abe and that Jenny bears a cost of $400 from the barking. Assuming Abe has the legal right to keep the dog, a possible private solution to this problem is that
a. Jenny pays Abe $150 to give the dog to his parents who live on an isolated farm. b. Abe pays Jenny $350 for her inconvenience. c. Jenny pays Abe $300 to give the dog to his parents who live on an isolated farm. d. There is no private transaction that would improve this situation.
Distinguishing among money, income, and wealth
A. A person's money is the currency held and the checking account balance, income is the earning and wealth is equal to the value of assets minus all debts B. A person's money is the currency held and the earnings from work, income is equal to the bank balance and wealth is equal to the profit from investment C. A person's money is the currency in the pocket, income is the earning and wealth is equal to asset value
If a positive permanent supply shock were to occur, the resulting equilibrium would be a:
A. higher level of output at lower prices. B. lower level of output and prices. C. higher level of output and prices. D. lower level of output at higher prices.
If there is an outward shift in U.S. demand for French goods, the result will be
A. a decrease in euros traded. B. an inward shift in French demand for U.S. goods. C. an increase in the dollar price of a euro. D. a decrease in the dollar price of a euro.