Reported GDP Increases When, in Fact, Total Production Is Unchanged

question 145

Multiple Choice

Reported GDP increases when, in fact, total production is unchanged when
I. there is a shift from household production to market production.
II. a previously illegal activity is legalized.

• A) i only
• B) II only
• C) neither i nor II
• D) both i and II

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Definitions:

Global Environmental Issues

Broad concerns that affect the earth and its ecosystems, including climate change, pollution, and biodiversity loss.

Precautionary Principle

A strategy employed in policy and environmental decision making that encourages caution and preventive action in the face of scientific uncertainty.

Coupon Interest Rate

The annual interest rate paid on a bond, expressed as a percentage of the face value, and paid from issue date until maturity.

Issuance Price

The price at which securities, such as stocks or bonds, are sold to the public or investors when they are first offered.