If country A had a smaller underground economy than country B, and country A's citizens worked more hours per week than the citizens of country B, other things equal, then
A) GDP comparisons between the countries would overstate the economic welfare of country A compared to B.
B) GDP comparisons between the countries would understate the economic welfare of country A compared to B.
C) it is impossible to know which direction GDP comparisons between the countries would be biased as measures of the economic welfare of the two countries.
D) it would not introduce any bias in using GDP to compare economic welfare between the countries.
Correct Answer:
Verified
Q121: The GDP deflator:
A)takes government purchases into account,
Q122: GDP excludes:
A)business purchases of investment goods, such
Q123: If nominal GDP rises:
A)we can be sure
Q124: If Jim pays $1000 to John:
A)GDP will
Q125: The total dollar value of purchases in
Q127: Would it be possible for an increase
Q128: If nominal GDP rises from $5 billion
Q129: The main difference between GDP and GNP
Q130: Which of the following is true?
A)Real GDP
Q131: Which of the following is false?
A)We do
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