Why might incomes of $1 a day and $2 a day underestimate the value of the goods and services that these households actually consume?
What will be an ideal response?
The people living on $1 and $2 a day probably grow a lot of their food and produce a lot of their clothing and shelter. If these goods and services are not taken into account, their share of goods and services is understated. Including them raises the value of the goods and services these
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The value of marginal product of labor is the increase in
A) revenue created by producing one more unit of output. B) revenue created by hiring one more unit of labor. C) total product necessary to make revenue increase by one dollar. D) total product generated by hiring one more unit of labor.
Nominal GDP is the value of goods and services
A) adjusted for inflation. B) adjusted for anticipated inflation. C) using base-year prices. D) using current -year prices.