Darin grows and sells marijuana to Jennifer. Thomas is an organic farmer who sells broccoli to Jennifer. Marijuana is an illegal good and broccoli is a legal good. Assume that if Jennifer marries either, they give her what they used to sell her. Which of the following statements is consistent with the way GDP is computed?
a. GDP will fall if Jennifer marries either Darin or Thomas.
b. GDP will fall if Jennifer marries Darin but not if she marries Thomas.
c. GDP will fall if Jennifer marries Thomas but not if she marries Darin.
d. GDP remains the same whether Jennifer marries Darin or Thomas.
c
You might also like to view...
Data on after-tax income and consumption spending for the Smith family are given in the table below.After-tax IncomeConsumption Spending$9,000$18,10014,00022,60019,00027,10024,00031,600Based on these data, the Smith family has a marginal propensity to consume of
A. 0.75. B. 0.8. C. 0.6. D. 0.9.
Capital markets of poor developing countries that liberalized their financial systems to allow private asset trade with foreigners are called
A) direct foreign markets. B) foreign exchange markets. C) stock & bond markets. D) emerging markets. E) fledgling financial markets.
The law of supply states that an increase in the price of a good
a. decreases the demand for that good b. decreases the quantity demanded for that good c. increases the supply of that good. d. increases the quantity supplied of that good. e. does none of the above
If interest rates rose more in Japan than in the U.S., then other things the same
a. U.S. citizens would buy more Japanese bonds and Japanese citizens would buy more U.S. bonds. b. U.S. citizens would buy more Japanese bonds and Japanese citizens would buy fewer U.S. bonds. c. U.S. citizens would buy fewer Japanese bonds and Japanese citizens would buy more U.S. bonds. d. U.S. citizens would buy fewer Japanese bonds and Japanese citizens would buy fewer U.S. bonds.