Which of the following would directly reduce GDP?
A)An unscrupulous disposal company dumps barrels of toxic waste near a suburban water supply.
B)The switch from home-cooked meals to restaurant meals lowers the nutritional value of the average diet.
C)The town of Council Bluffs decides to fire the lifeguards at the local swimming pool.
D)Pollution of international waters increases.
E)Damage claims filed with auto insurance companies increase.

Question

Quizplus · Accepted Answer

Firing lifeguards reduces government spending, which is a component of GDP, thus directly reducing GDP.

Which of the Following Would Directly Reduce GDP