QUESTION 18 If country A had a smaller underground economy than country B, and country A's citizens worked more hours per week than the citizens of country B, other things equal, then a. it is impossible to know which direction GDP comparisons between the countries would be biased as measures of the economic welfare of the two countries. b. it would not introduce any bias in using GDP to compare economic welfare between the countries. GDP comparisons between the countries would overstate the economic welfare of country A compared to B. GDP comparisons between the countries would understate the economic welfare of country A compared to Od.B.

QUESTION 18 If country A had a smaller underground economy than country B, and country A's citizens worked more hours per week than the citizens of country B, other things equal, then a. it is impossible to know which direction GDP comparisons between the countries would be biased as measures of the economic welfare of the two countries. b. it would not introduce any bias in using GDP to compare economic welfare between the countries. GDP comparisons between the countries would overstate the economic welfare of country A compared to B. GDP comparisons between the countries would understate the economic welfare of country A compared to Od.B.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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