Which of the following is likely to increase measured GDP?
A) A greater number of women decide to stay at home and provide day care for their children under age 5.
B) Marijuana becomes legal to grow and sell.
C) Tax rates increase and more people attempt to underreport their income for tax purposes.
D) More people decide to do their own lawn maintenance and give up using a professional service.
Answer: B
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Mothers Against Drunk Drivers (MADD) campaigned to increase the legal penalties of drunk driving. This successful campaign ________ of drunk driving
A) increased the marginal benefit B) decreased the marginal benefit C) increased the marginal cost D) decreased the marginal cost E) had no effect on the marginal cost or marginal benefit but did affect the total benefit
Using the scenario above what might the instructor do to avoid this same result?
What will be an ideal response?
Variable costs are relevant for
A. short-term everyday decision making. B. businesses only. C. long-term strategic planning. D. calculating fixed cost percentages.
Which one of the following will not directly affect the U.S. balance on current account?
A. An increase in U.S. goods imports. B. A decrease in U.S. net investment income. C. An increase in U.S. purchases of assets abroad. D. An increase in U.S. imports of services.