Suppose a friend claims he is helping the economy by throwing trash on the street rather than in trash cans because the extra expenditures necessary to clean up the streets will increase GDP.Your friend is
A) Wrong.GDP will not be affected because nothing new is being produced.
B) Right.GDP will increase,ceteris paribus.
C) Wrong.GDP will not be affected because this is not a socially desirable use of resources and will therefore not be included in GDP.
D) Wrong. GDP will decline because the neighborhood will be less clean.
Correct Answer:
Verified
Q12: GDP can be calculated by all of
Q15: DVD players can be added to bicycles
Q16: National income accounting is defined as the
A)Use
Q18: A nation's GDP can be calculated as
A)The
Q19: If GDP grows more rapidly than population
Q21: The sum of value added
A)Measures the intangible
Q22: Which of the following is directly included
Q24: Real GDP is more accurate than nominal
Q25: To avoid counting the same output more
Q27: Which of the following would not be
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents