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National Income Aggregates & GDP · Question 62 of 69

Question 62

EasyOriginal question

Smoke from a factory that harms people living nearby is an example of

Options for question 62

Show the answer and explanation
CorrectNot quiteAnswer B

Correct answer: B

Explanation

  1. The harm falls on others and no one pays for it, so GDP does not subtract it.

Concept
Externalities
Typical time
40 s
Your time
—
The rule this testsGDP and welfare
Practise this chapter →

Ten questions from National Income Aggregates & GDP, at your own pace.

Practise this chapter →

Ten questions from National Income Aggregates & GDP, at your own pace.