If the underground economy is sizable,
GDP will understate an economy's performance by a sizable amount.
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Multiplier effects occur when there is a change in spending which does not depend on income. Spending which does not depend on income is referred to as
A) coincident spending. B) nominal spending. C) autonomous expenditures. D) induced expenditures.
Which of the following represented the largest percentage of the U.S. federal budget in 2007?
a. income support, Social Security, and welfare b. defense c. education d. agriculture e. interest payments on the public debt
Regarding the production possibilities curve, an improvement in technology will
A. cause a movement downward along the curve B. shift the curve to the right. C. shift the curve o the left. D. cause a movement downward along the curve.
Which of the following statements about a monopolistically competitive firm is TRUE?
A) A monopolistically competitive firm does not always equate marginal cost to marginal revenue because it uses other means to maximize profits. B) A monopolistically competitive firm maximizes profits by charging a price equal to marginal cost. C) A monopolistically competitive firm produces the quantity at the point at which the demand curve crosses the marginal cost curve. D) A monopolistically competitive firm maximizes profits when it produces the quantity at which marginal cost equals marginal revenue.