GDP tends to ________.
A. overstate economic welfare, because it does not include certain nonmarket activities such as the productive work of housewives
B. understate economic welfare, because it does not take into account increases in leisure
C. understate economic welfare, because it includes expenditures undertaken to offset or correct pollution
D. overstate economic welfare, because it does not reflect improvements in product quality
Answer: B
You might also like to view...
Under Federal Trade Commission merger guidelines, an industry with a Herfindahl-Hirschman index (HHI) of 800 points is considered
A) competitive. B) moderately concentrated. C) concentrated. D) a monopoly.
The law that created the high level of tariffs in United States in the 1930s is
A) the GATT Act. B) the World Trade Act. C) the Smoot-Hawley Act. D) the Tariffs Agreement Act.