What are transfer payments, and how do they affect the calculation of GDP?
Transfer payments are income benefits paid to individuals from the government. Since they are excluded from government purchases, they do not affect GDP.
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Someone who sells commodity futures is
A) hedging. B) purchasing risk. C) selling risk. D) simultaneously purchasing and selling risk. E) not necessarily doing any of the above.
Nominal GDP is the value of goods and services
A) adjusted for inflation. B) adjusted for anticipated inflation. C) using base-year prices. D) using current -year prices.
The short run is a time period such that: a. the existing firms in the industry do not have sufficient time to adjust the quantity of any inputs which they employ. b. the existing firms in the industry do not have sufficient time to adjust their current rate of output
c. new entrants have sufficient time to build factories and enter the industry. d. the existing firms in the market do not have sufficient time to increase the size of their existing plants or build new factories.
An oligopoly with two firms is known as:
A. a two-opoly. B. a duopoly. C. duopolistic competition. D. a double market.