Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Part 1 (1 point) See Hint In many parts of the world, a significant amount of effort goes into nonmarket production in the household, such
Part 1 (1 point) See Hint In many parts of the world, a significant amount of effort goes into nonmarket production in the household, such as stay-at-home parenting. For example, Zimbabwe has a very high rate of nonmarket household production, about 35% of GDP. In contrast, Canada has a low rate of nonmarket household production, about 12% of GDP. How does the difference in nonmarket household production affect a comparison of GDP between Zimbabwe and Canada? Choose one or more: O A. The difference between Canada's and Zimbabwe's GDP would be larger if nonmarket production were counted. O B. Canada's GDP would be lower if nonmarket production were counted. O C. The difference between Canada's and Zimbabwe's GDP would be smaller if nonmarket production were counted. O D. Zimbabwe's GDP would be lower if nonmarket production were counted. O E. Canada's GDP would be higher if nonmarket production were counted. O F. Zimbabwe's GDP would be higher if nonmarket production were counted.Part 2 (1 point) See Hint Suppose that the amount of nonmarket production is the same in both countries but that Canadians have far more leisure time than Zimbabweans. How would this difference in leisure time affect a comparison of GDP between Zimbabwe and Canada? Choose one or more: O A. Zimbabwe's GDP would be higher if leisure time were counted. O B. Canada's GDP would be lower if leisure time were counted. O C. The difference between Canada's and Zimbabwe's GDP would be smaller if leisure time were counted. O D. Zimbabwe's GDP would be lower if leisure time were counted. O E. Canada's GDP would be higher if leisure time were counted. O F. The difference between Canada's and Zimbabwe's GDP would be larger if leisure time were counted.Part 3 (1 point) 0 See Hint Let's consider the underground, or shadow, economy in each country. Assume that the size of the underground economy is 10% of GDP in Canada and 40% of GDP in Zimbabwe. Why is the underground economy so much larger in Zimbabwe? Choose one or more: A. Zimbabwe's economy does not generate thejobs and opportunities that allow people to earn more in legitimate activities. 103 B. Life satisfaction is lower in Zimbabwe, so people rely on underground services to increase their happiness. C. Many services provided in the shadow economy are not available through international trade. D. Zimbabwe's government is more corrupt and less transparent than Canada's government
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started