Which of the Following Is Likely to Increase Measured GDP

question 155

Multiple Choice

Which of the following is likely to increase measured GDP?

• A)A greater number of women decide to stay at home and provide day care for their children under age 5.
• B)Marijuana becomes legal to grow and sell.
• C)Tax rates increase and more people attempt to underreport their income for tax purposes.
• D)More people decide to do their own lawn maintenance and give up using a professional service.

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Definitions:

Consumer's Surplus

The gap between the total sum consumers are ready and able to spend on a good or service and what they actually spend.

Used Cars

Pre-owned vehicles that have been previously registered and used by one or more owners.

Constant Marginal Cost

A situation where the marginal cost of producing one additional unit of output is the same, regardless of the level of production.

Separate Markets

Markets for different goods or services that do not affect each other, often due to geographical, product differentiation, or segmentation reasons.