Author Question: Gross domestic product (GDP) is not a perfect measure of welfare because it: a. treats a dollar ... (Read 74 times)

ericka1 · **on:** Jun 30, 2018

Gross domestic product (GDP) is not a perfect measure of welfare because it:
a. treats a dollar spent on guns the same as a dollar spent on education.
b. treats a dollar spent on exports the same as a dollar spent on imports.
c. double counts the value of leisure time.
d. double counts depreciation.
e. counts illegal activities in the underground economy.

Question 2

Which of the following is not true about a monopsonist?
a. It can set the wage rate and hire any desired number of workers at that wage.
b. It is the only buyer of labor in a market.
c. It usually extracts rents from its monopsony power.
d. It determines the optimal employment-wage rate combination by equating the marginal revenue product of labor to the marginal cost of labor.
e. It usually has to bargain with unionized workers.