Question

Question 7 Which of the following would raise GDP in 2020? Increase in the number of high school dropouts quitting their jobs in 2020 so they can go back to school Decrease in the number of hours per week in 2020 so people have more time for leisure Decrease in income inequality in 2020 Increase in the number of people doing their own household chores in 2020 instead of hiring people Increase in the number of instructors who break windows on college campuses in 2020 so that repairmen need to be hired to fix the messes Question 8 1820 to 2000AD was on a

Answer 1

Option 3 is correct because a reduction in the income inequality leads to an increase in the growth which ultimately leads to an increase in the GDP.

Option 1 is incorrect because people quitting jobs will not lead to an increase in the GDP. When the country's citizens get educated, it will increase their productivity which will benefit the economy in the long run. Option 2 is incorrect because a decrease in the number of work hours and increase in leisure will not lead to an increase in the GDP. Leisure will enhance the labour productivity. Similarly, option 4 is incorrect because when there is an increase in the people who are doing their own household chores instead of hiring people, it will not lead to an increase in GDP. It leads to a reduction in the employment which could decrease the GDP. Option 5 does not lead to an increase in the GDP because repairing the broken window does not lead to an increase in the overall output produced in the economy.