A Nation Has Automobile Factories, Grows (Illegal) Marijuana, and Does

question 19

Multiple Choice

A nation has automobile factories, grows (illegal) marijuana, and does not allow its women to work outside the home. What will be counted in GDP?

• A) the sale of automobiles and the marijuana
• B) the sale of automobiles, the marijuana, and the value of the women's work
• C) the sale of automobiles minus the environmental effects of pollution emitted by the factories
• D) the sale of the automobiles

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Definitions:

Indifference Principle

If an asset is mobile, then in long-run equilibrium, the asset will be indifferent about where it is used; that is, it will make the same profit no matter where it goes.

Garbage Collector

An individual or entity responsible for collecting and disposing of waste material from public or designated areas.

Relatively Higher

A comparative term indicating that one variable or item is of greater magnitude or intensity compared to another or the general context.

Competitive Industry

An industry characterized by many sellers, where no single company can control market prices.