Hi,

Please help on the following questions.

QUESTION 25

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
• c. spent on exports the same as a dollar spent on imports
• d. double counts the value of leisure timedouble counts depreciation
• e. counts illegal activities in the underground economy

QUESTION 36

Which of the following would increase GDP?

• a. More people walk to work rather than drive cars.
• b. Consumers in rural areas switch from buying home heating oil to burning wood they collect on their own land.
• c. Farm families grow more for themselves than for the market.
• d. Neither the price nor the quantity of television sets changes, but the quality of sets improves.
• e. The amount spent on vacuum cleaners does not change, but quality decreases so much that more is spent on their repair.

QUESTION 47

GDP doesnotinclude the

• a. increase in business inventories in the period
• b. expenditures by government for newly produced goods and services in a given period
• c. value of all transactions in the economy during a given period
• d. value of final output during a given period
• e. household spending on electricity

Thank you beforehand.

Alex