1. See the figure below. D2 is more elastic than D1. True False
Suppose, a trypothetical economy produces two goods; food and clothing. Based on the
information below, what is real GDP in 2001 (given that the base year is 20 Foot 1060
Which one of the following statements about Gross Domestic Product (GDP) incorrect? It is not
an indicator of inequality. It does not include home production (such as cooking, cleaning, care
giving etc.). It is a measure of economic activity. It is a measure of standard of living.
QUESTION 20 Pollution is a by-product of some production processes, so on this count real
GDP as measured is adjusted downward to take into account the pollution. is adjusted upward to
take into account the expenditures that will be made in the future to clean up the pollution. tends
to overstate economic activity. tends to understate economic activity.