Author Question: Pat gives up a 40,000 per year job to stay at home and take care of the house. By so doing, Pat ... (Read 41 times)

robinn137 · **on:** Jun 29, 2018

Pat gives up a 40,000 per year job to stay at home and take care of the house. By so doing, Pat saves 15,000 in child care and house cleaning services which he now performs himself. The direct effect on GDP from Pat's decision is a decrease of

A) 25,000. B) 15,000. C) 30,000. D) 40,000. E) 55,000.

Question 2

In a production possibilities frontier diagram, the attainable production points are shown as

A) the points inside and the points on the production possibilities frontier.
B) only the points inside the production possibilities frontier.
C) any of the production points.
D) only the points beyond the production possibilities frontier.
E) only the points on the production possibilities frontier.