Answered: 1-While calculating GDP, goods and…

Principles of Macroeconomics (MindTap Course List)

7th Edition

ISBN:9781285165912

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter10: Measuring A Nation's Income

Section: Chapter Questions

Problem 9PA

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1-While calculating GDP, goods and services that are produced and sold illegally and items that are produced and consumed at home are not included because __________

Select one:

a. government wants to discourage these production and consumption

b. it does not contribute much value to GDP

c. these goods and services does not pay taxes

d. measuring them is so difficult

Clear my choice

Country A has a population of 1,000, of whom 700 worked an average of 8 hours a day and had a productivity of 2.5. Country B has a population of 800, of whom 560 worked 8 hours a day and had productivity of 3.0. The country with the higher real GDP is country B.

Select one:

a. True

b. False

Clear my choice

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