A problem with the CPI is the presence of a substitution bias on the behalf of consumers

In measuring GDP, which of the following is included?

A) the value of durable consumption goods but not the value of nondurable consumption goods. B) the value of preparing meals at home C) the value of stocks and bonds bought and sold D) the value of increases in business inventories E) the value of used goods when they are sold

Pollution charges will be efficient if

a. the charge is just equal to the cost borne by others from the pollution. b. the charge is greater than the cost borne by others from the pollution. c. the charge is less than the cost borne by others from the pollution. d. none of the above.