Which of the following helps economists avoid double counting in computing of GDP?
a. Including goods and services produced only within a given area.
b. Only include transfer payments made by the government and not individuals.
c. Only include capital purchases by corporations and not by family-owned firms.
d. Avoiding the use of intermediate goods in calculating GDP.
D
You might also like to view...
Suppose the market for cement is such that the government does not interfere in price determination but plays an important role in the provision of property rights
While there are a large number of buyers and sellers, everyone conducts transactions at a common market price. Which of the following statements is true about the structure of the cement market? A) The cement market is government regulated. B) All participants in the cement market are price makers. C) All transactions in the cement market are likely to be involuntary. D) The cement market is free and competitive.
A decrease in the demand for incandescent light bulbs due to changes in consumer tastes, accompanied by a decrease in the supply of incandescent light bulbs as a result of government restrictions, will result in
A) a decrease in the equilibrium quantity of incandescent light bulbs; the equilibrium price may increase or decrease. B) a decrease in the equilibrium quantity of incandescent light bulbs and no change in the equilibrium price. C) a decrease in the equilibrium price of incandescent light bulbs and no change in the equilibrium quantity. D) a decrease in the equilibrium price of incandescent light bulbs; the equilibrium quantity may increase or decrease.
Although the Fed professed employment of ________ targeting during the 1970s, its behavior suggests that it emphasized ________ targeting
A) free-reserve; interest-rate B) interest-rate; monetary aggregate C) monetary aggregate; interest-rate D) free reserve; monetary aggregate
If a central bank is independent,
a. it has the ability to alter taxes. b. it allocates savings to firms. c. it restricts trade to increase domestic employment. d. it operations are not controlled by the political process.