Which of the following statements is true?

A) Household production is counted in GDP as it amounts to real production.
B) GDP growth distributes income equally to people in the economy.
C) GDP accounting rules do not adjust for production that pollutes the economy.
D) A decrease in the crime rate increases GDP as people will spend more on security.

C

Economics

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The marginal benefit of pollution abatement

A) increases at an increasing rate as abatement increases. B) decreases as pollution abatement increases because of the law of diminishing marginal utility. C) increases as pollution abatement increases because of the law of increasing marginal returns. D) is constant as pollution abatement increases.

Economics

Bob and Bill can make 16 toys each if they devote 8 working hours in a day. Further, Bob can repair 4 cars and Bill can repair 2 cars, if they devote 8 working hours in a day. What is the opportunity cost of repairing one car to Bob?

a. 10 toys b. 8 toys c. 16 toys d. 12 toys e. 4 toys

Economics