Suppose the government passes a law eliminating holidays and, as a result, the production of goods and services increases because people work more days per year (and thus enjoy less leisure per year). Based on this scenario, which of the following statements is correct?
a. GDP would definitely increase, despite the fact that GDP includes leisure.
b. GDP would definitely increase because GDP excludes leisure.
c. GDP could either increase or decrease because GDP includes leisure.
d. GDP could either increase or decrease because GDP excludes leisure.
b
Economics
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Which of the following is a statement with positive economic analysis?
A) Lower wages increase employment and reduce the unemployment rate. B) Slower money growth reduces inflation. C) A reduction in the size of the budget deficit will reduce interest rates. D) all of the above
Economics
What is meant by the term "opportunity cost"?
What will be an ideal response?
Economics