Because pollution reduces economic welfare, on this count real GDP as measured
A) decreases as pollution increases.
B) increases to take into account the expenditures that will be made in the future to clean up the pollution.
C) overstates economic welfare.
D) understates economic welfare.
Question 2
A price ceiling ________.
A) makes it illegal to charge a higher price than the specified price
B) is more effective when it is higher
C) is necessary to maintain market equilibrium
D) occurs in housing markets only
