GDP is not a perfect measure of welfare because it
a. treats a dollar spent on candy bars the same as a dollar spent on education
b. treats a dollar spent on exports the same as a dollar spent on imports
c. double counts the value of leisure time
d. double counts depreciation
e. counts illegal activities in the underground economy
A
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Refer to the table above. The trade balance of the country during that particular year was ________
A) $4,000 B) -$104,000 C) -$6,000 D) $50,000
Assume perfect capital mobility. Under a fixed exchange rate system, expansionary fiscal policy causes the value of the dollar to _____, while expansionary monetary policy causes the value of the dollar to _____
a. rise; rise b. fall; fall c. fall; rise d. rise; fall
Over the last century, U.S. real GDP per person grew at a rate of about
a. 2 percent per year, so that it is now 2 times as high as it was a century ago. b. 2 percent per year, so that it is now 8 times as high as it was a century ago. c. 4 percent per year, so that it is now 2 times as high as it was a century ago. d. 4 percent per year, so that it is now 8 times as high as it was a century ago.
The crude quantity theory of money and the sophisticated quantity theory of money are approximately similar
A. in times of deflation. B. in times of high unemployment. C. in times of full employment. D. in no set of circumstances.