Suppose Amber Crombie and her husband Fitch spend 1400 this year ...

[newbem]

Suppose Amber Crombie and her husband Fitch spend 1400 this year on healthcare and medicines for the chronic nasal congestion they suffer living next to smelly Lake Lillypad. How does their expenditure affect GDP?
 
  A) It doesn't affect GDP at all.
  B) GDP would decrease by 1400.
  C) GDP would increase by 1400.
  D) GDP would increase by 1400 only if the healthcare and medicines cured their chronic nasal congestion; if it remains uncured, then GDP would remain unchanged.

Question 2

Suppose an economist claims there are substitutes for wetlands. The person is saying
 
  A) wetlands are of no value.
  B) wetlands are worth less than their substitutes.
  C) there is a cost to maintaining a wetland.
  D) there is a cost to maintaining a wetland, and it is necessarily too high.
  E) economists don't like wetlands.

[Moriaki]

Answer to Question 1

C

Answer to Question 2

C