GDP is not a perfect measure of well-being because
A) the value of leisure is included in GDP.
B) GDP is not adjusted for pollution.
C) GDP is adjusted for changes in crime rates.
D) GDP is adjusted for increases in drug addiction.
Answer: B
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Which of the following statements is correct concerning the burden of a tax imposed on take-out food?
A.We have to know whether it is the buyers or the sellers that are required to pay the tax to the government in order to make this determination. B. Sellers bear the entire burden of the tax. C. Buyers bear the entire burden of the tax. D. Buyers and sellers share the burden of the tax.
How does the calculation of GDP include the costs of natural resource depletion that occurs when output is produced?
a. The value of resource depletion is added to GDP. b. The cost of resource depletion is not measured in GDP. c. The cost of resource depletion is added to real but not nominal GDP. d. Resource depletion causes GDP to overstate well being.