macro_tif1_ch07

Whichof thefollowingislikelytoincreasemeasuredgdp a

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: other countries. C) tend to be smaller and have less capital than firms acting legally. D) produce goods and services no one wants. Answer: C Diff: 1 Type: MC Page Ref: To pic : 643/223 T S Factual Objective: LO2: Discuss whether GDP is a good measure AACSB Coding: of wellbeing Reflective Thinking Special Feature: Making the Connection: How the Underground Economy Hurts Developing Countries 9. Legalizin g all forms of illegal activities A) reduces GDP and the size of the underground economy. B) increases GDP and increases the size of the underground economy. C) increases GDP and reduces the size of the underground economy. D) reduces GDP and increases the size of the underground economy. Answer: C Diff: 2 Type: MC Page Ref: To pic : 644/224 T S Conceptual Objective: LO2: Discuss whether GDP is a good measure AACSB Coding: of wellbeing Reflective Thinking Special Feature: None 10. Which of the following statements is true? A) GDP accounting rules do not adjust for production that pollutes the economy. B) Household production is counted in GDP as it amounts to real production. C) A decrease in the crime rate increases GDP as people will spend more on security. D) GDP growth distributes income equally to people in the economy. Answer: A Diff: 2 Type: MC Page Ref: To pic : 644/224 S S Factual Objective: LO2: Discuss whether GDP is a good measure AACSB Coding: of wellbeing Reflective Thinking Special Feature: None 11. Which of the following is likely to increase measured GDP? A) Tax rates increase and more people attempt to underreport their income for tax purposes. B) A greater number of women decide to stay at home and provide day care for their children under age 5. C) Marijuana becomes legal to grow and sell. D) The do-it- yourself craze becomes increasingly popular and more people decide to improve their own homes. Answer: C Diff: 2 Type: MC Page Ref: To pic : 644/224 S S Conceptual Objective: LO2: Discuss whether GDP is a good measure AACSB Coding: of wellbeing Reflective Thinking Special Feature: None 12. The U.S. week has declined from 60 hours in 1890 to 40 hours today. The impact of the decline in working hours work A) decreases U.S. GDP and decreases the well-being of a typical working person in the U.S. B) increases U.S. GDP and increases the well-being of a typical working person in the U.S. C) decreases U.S. GDP and increases the well-being of a typical working person in the U.S. D) increases U.S. GDP and decreases the well-being of a typical working person in the U.S. Answer: C Diff: 2 Type: MC Page Ref: To pic : 644/224 S S Conceptual Objective: LO2: Discuss whether GDP is a good measure AACSB Coding: of wellbeing Reflective Thinking Special Feature: None 13. A sharp in the divorce rate increases the number of lawyers hired to determine divorce settlements. This will increase A) increase GDP and decrease well being in the economy. B) decrease GDP and decrease well being in the economy. C) decrease GDP and increase well being in the economy. D) increase GDP and increase well being in the economy. Answer: A Diff: 1 Type: MC Page Ref: To pic : 644/224 S S Conceptual Objective:...
View Full Document

This note was uploaded on 09/21/2012 for the course ECON 2010 taught by Professor Roussel during the Spring '08 term at LSU.

Ask a homework question - tutors are online