Leisure Time Is Ignored When Calculating GDP Because Leisure Time

question 10

Multiple Choice

Leisure time is ignored when calculating GDP because leisure time

• A) is not bought in a market.
• B) is not an economic good.
• C) is not productive.
• D) has been declining over time.
• E) does not affect our standard of living.

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Definitions:

Tax

A necessary economic duty or another sort of imposition exacted from a taxpayer by a governmental agency to allocate funds for government activities and multiple public financial needs.

Good

A tangible item that satisfies some human want or need, which can be transferred from the producer to a buyer.

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved, leading to a mismatch between supply and demand.

Tax

A non-negotiable pecuniary charge or alternate levy directed at a taxpayer by a government authority to underwrite the costs of government functioning and various public funding requirements.