GDP understates the value of output produced by an economy because it
A. includes environmental degradation caused by increased output production.
B. excludes the value of the wages and fringe benefits of government employees.
C. includes transactions that do not take place in organized markets, such as home-cooked meals.
D. excludes value added from the underground economy, such as tips taken "under the table."
Answer: D
You might also like to view...
A country with no trade and no borrowing and lending relationships with other countries is known as a(n)
A) closed economy. B) planned economy. C) open economy. D) market economy.
In the short run, a decrease in the market demand will cause a perfectly competitive firm to ________ production and ________.
A) decrease; earn economic profit B) increase; incur economic losses C) decrease; incur economic losses D) increase; earn economic profit
For which of the following variables should a "two tail" t-test be applied?
A) PA B) I C) PB D) Should be applied for all.
Managers of profit centers earn more when their divisions
a. increase their sales and increase their costs b. decrease their sales and increase their costs c. decrease the costs of the components for which they are responsible d. increase the costs of the components for which they are responsible