1. The informal sector can be a significant dragon the economies of developing countries because the firms in the informal sector A) produce goods and services no one wants. B) sell their goods and services to citizens in other countries C) do not pay taxes to the government. D) employ illegal immigrants from other countries. 2. An economy can improve its standard of living by A) organizing production so that the quantity of goods produced per hour will decrease. 8) reducing the amount of human capital workers have. C) increasing the amount of capital available per hour worked. D) all of the above 3. Which of the following is counted in GOP? A) the value of goods and services produced in the underground economy B) the cost of a speed boat purchased by your father C) the value of do-it-yourself work D) the value of leisure 4. Suppose in 2016, you purchase a house built in 2003. Which of the following would be included in the gross domestic product for 2016? A) the value of the house in 2016 B) the value of the house in 2003 C) the value of the house in 2016 minus depreciation D) the value of the services of the real estate agent 5. If nominal GDP is $8,820 billion and the GDP-deflator is 105, then the real GDP is 2. An economy can improve its standard of living by A) organizing production so that the quantity of goods produced per hour will decrease. B) reducing the amount of human capital workers have. C) increasing the amount of capital available per hour worked. D) all of the above