Productive activity in the underground economy:
a. results in an overstatement of actual income and production in the national accounting system.
b. consists of unrecorded cash transactions.
c. is estimated and included in the national income accounting system.
d. poses no problem for the measurement of gross domestic product.
e. does not affect GDP but is included in the value-added computations.
b
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Refer to the scenario above. Which of the following is true?
A) Both the workers should specialize in the production of Good Y. B) Worker 1 should produce Good Y and Worker should produce Good X. C) Worker 1 should produce Good X and Worker should produce Good Y. D) Both the workers should specialize in the production of Good X.
The above figure shows a nation's production function. Point B is ________ and ________ because ________
A) unattainable; inefficient; the nation is using resources efficiently but they could be more efficient B) unattainable; inefficient; the nation is using resources inefficiently C) attainable; inefficient; the nation is using resources inefficiently D) unattainable; efficient; the nation would be using resources efficiently if they could attain this level of production E) attainable; efficient; the nation is using resources efficiently