Which of the Following Would Lead GDP to Overstate Economic

question 332

Multiple Choice

Which of the following would lead GDP to overstate economic welfare?

• A) the existence of home-cooked meals
• B) restaurant workers that under-report tip income
• C) a self-employed CPA who takes a longer than normal vacation
• D) electric utilities that switch to burning coal because of higher natural gas prices and thereby create more acid rain pollution

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Definitions:

Contract Action

A legal proceeding initiated to enforce the terms of a contract or to resolve disputes arising from a contract.

Apparent Authority

The appearance or assumption of authority based on the actions or statements of the principal, leading third parties to believe an agent has authority to act.

Actual Authority

A legal concept where a party is officially granted the power to act on behalf of another, particularly in a business setting.

Implied Authority

The power of an agent to act on behalf of a principal, assumed to be granted due to the nature of the relationship, without explicit consent.