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Question 2 Not yet answered Marked out of 1 Not flaggedFlag question Question text Which statement is true? Select one: a. More leisure is available now (as compared to a generation ago), due to a shorter workweek and earlier retirement. b. Leisure-time has economic value but is not reflected in GDP. c. Quality improvements of goods and services are reflected in GDP. d. The importance of new products in improving our lives is reflected in GDP.

Solution

a) More leisure is available now due to shortworkweek: False (work has increased and competition has increased, making leisure a luxury and difficult to afford to due constant pressure to work)

b) Leisure-time has economic value but is not reflected in GDP: True (leisure does have an economic value and is of importance to the consumers, along with work. However, since it does not produce an production activity, it is not given a monetary value and not included in GDP

c) Quality improvements of goods and services are reflected in GDP: False (only the quantity of goods and services are produced, and not quality, since it depends person to person to value)

d) Importance of new products in improving our lives is reflected in GDP: False (importance of goods and services is a qualitative matter and not taken into account in GDP)