Marianne and Laura Are Both Homemakers with Children

question 42

Multiple Choice

Marianne and Laura are both homemakers with children.When Laura starts to work as an unpaid volunteer at a hospital,she hires Marianne to care for her young child.In this context,the gross domestic product (GDP) will _____.

• A)increase
• B)decrease
• C)remain unaffected
• D)increase if Marianne cares for the child better than Laura
• E)increase if Laura treats patients with more sincerity than the other volunteers

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Definitions:

Crowding Model

A theory in public economics that describes how public sector investments can lead to a displacement of private sector activity, especially in cases of finite resources.

High-Paying Occupations

Jobs that offer wages significantly above the average for all occupations.

Domestic Output

The aggregate monetary value of goods and services created within a country's borders throughout a specified period.

Discrimination Coefficient

A measure used to quantify the extent to which prices are adjusted based on customer characteristics in markets where price discrimination occurs.