GDP tends to overstate economic well-being because it takes into account:
A. Improvements in product quality over time
B. Expenditures undertaken to correct pollution
C. Illegal activities of individuals and businesses
D. Nonmarket activities, such as the productive work of homemakers
B. Expenditures undertaken to correct pollution
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The Solo Coal Mine is the only employer in the small town of Way out there. The market supply of miners is Qs = 0.02W - 200 and Qd = 500 - 0.02W, where W is the annual wage of a coal miner and Q is the number of coal miners. What is the profit maximizing number of coal miners for the coal mine to hire?
A. 100 B. 150 C. 50 D. 233.33
Any activity designed to transfer income or wealth to a particular individual or firm at society's expense is called:
A. X-inefficiency. B. rent-seeking. C. price discrimination. D. patent protection.