Economists Often Examine GNP to Estimate Changes in the Well

question 27

Multiple Choice

Economists often examine GNP to estimate changes in the well being of people. If one only studied GNP, which of the following would lead  one to underestimate the true increases in peoples' well being?

• A) Increasing average hours of work.
• B) Decreasing life expectancy.
• C) Increasing levels of pollution.
• D) Increasing amounts of production in the home.

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Definitions:

Par Value

A nominal value assigned to a share of stock in the charter of the corporation, often used to determine legal capital.

Shares

Units of ownership interest in a corporation or financial asset, giving the shareholder a proportion of the company's profits.

Treasury Stock

Stocks that the issuing corporation has distributed and then bought back, diminishing the number of shares available for trade on the public market.

Market Value

The present cost at which a product or service is available for purchase or sale in an open market.