When someone stops mowing his lawn and hires a teenager for cash that is unreported, what happens to GDP?
A. It probably does not change. Production has shifted from nonmarket to the underground economy and neither is counted.
B. It falls because production by noncitizens is counted in their home country, not in the United States.
C. It rises because GDP includes the value of the additional leisure time that dad gets by hiring a noncitizen.
D. It rises because a nonmarket activity is now a legal market activity.
Answer: A
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In the U.S., the ________ is a law to keep markets open and competitive
A) Sherman act B) Samuelson act C) Monopoly act D) pro-competition act
An increase in interest rates might be an example of a ________ policy for the purpose of ________
A) monetary; reducing inflation B) monetary; lowering unemployment C) monetary; increasing the quantity of money D) fiscal; reducing inflation E) fiscal; lowering unemployment
Two items which have a positive cross price elasticity of demand are referred to as
A) luxury goods. B) inferior goods. C) substitutes. D) complements.
Refer to the information provided in Table 2.2 below to answer the following question(s).Table 2.2?MollyPeteAvatar Design68Tattoo Design32Refer to Table 2.2. To maximize total production,
A. Molly should design avatars and tattoos, but Pete should only design avatars. B. Molly should specialize in avatar design and Pete should specialize in tattoo design. C. Pete should specialize in avatar design and Molly should specialize in tattoo design. D. Molly and Pete should both split their time between designing avatars and tattoos.