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
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Q12: GDP can be calculated by all of
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Q15: Which of the following is excluded from
Q17: National income accounting is defined as the
A)Use
Q18: The GDP per capita is the most
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Q20: Which of the following would be included
Q21: If a farmer grows a head of
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