GDP is defined as the market value of all final goods and services produced within a country in a given period of time. In spite of this definition, some production is left out of GDP. Explain why some final goods and services are not included
GDP excludes some products because they are so difficult to measure. These products include services performed by individuals for themselves and their families, and most goods that are produced and consumed at home and, therefore, never enter the marketplace. In addition, illegal products are not included in GDP.
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Which graph in the above figure represents the isoquants where, as the amount of labor used increases and the amount of capital used decreases, the marginal product of labor rises when Capital per day is on the vertical axis and Labor per day is on
the horizontal axis? A) Graph A B) Graph B C) Graph C D) Graph D
Each of these is a basic characteristic of a capitalist economy, except
A. the institution of private property. B. central planning. C. laissez-faire. D. individuals acting in their own self-interest.