You hire some of your friends to help you move to a new house. You pay them a total of 200 and buy them dinner at Pizza Hut. Which of the following is true?
A) Hiring your friends is an illegal activity and should not be counted in GDP.
B) Neither the 200 nor the dinner should be counted in GDP because both are household production.
C) The dinner at Pizza Hut should be counted as part of GDP, but not the 200.
D) The 200 should be counted as part of GDP but not the dinner at Pizza Hut.
E) If your friends do not report the 200 on their tax forms, it becomes part of the underground economy.
Question 2
In the figure above, an increase in z leads to a
A) movement down along one of the lines showing the relationship between x and y.
B) rightward shift of the line showing the relationship between x and y.
C) trend change in both x and y.
D) leftward shift of the line showing the relationship between x and y.
E) movement up along one of the lines showing the relationship between x and y.
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