Instead of Taking the Dirty Laundry with You When You

question 101

Multiple Choice

Instead of taking the dirty laundry with you when you go back to visit your parents,you use a Laundromat.Your use of the Laundromat means that

• A)GDP will decrease and the country's standard of living will fall.
• B)your parents' contribution to GDP will increase.
• C)GDP will remain the same.
• D)what you paid for use of the Laundromat will be included in GDP.
• E)real GDP does not change because the clothes are still being laundered but nominal GDP rises since you are now paying for the service.

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Definitions:

Minimizes Losses

Strategies or actions taken to reduce the amount of money or resources that are wasted or not profitably used.

AVC

Average Variable Cost refers to the total of all variable expenses incurred, divided by the total number of units produced.

Economic Profits

The difference between total revenue and total costs, including both explicit and implicit costs, representing the total financial gain of a business.

Monopolistically Competitive

A market structure characterized by many sellers offering differentiated products, allowing some degree of pricing power and market segmentation.