Why are transfer payments not included in GDP?
A) The amount is too low to have any effect.
B) Unemployment varies and can't be tracked.
C) Money companies receive from the government isn't reported.
D) They do not represent payments to those who contributed resources to currently produced goods or services.
D
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The distinguishing of products by brand name, color, and other attributes
A) is known as interdependence. B) is known as product differentiation. C) leads to many firms in the market. D) leads to collusion.
Suppose your accountant told you that the $50,000 you made last year was the total revenue you earned minus both explicit and implicit costs. You would be pleased because that $50,000 represents your
a. economic loss b. economic profit c. normal profit d. money receipts and payments and you came out ahead by $50,000 e. accounting profit
The cumulative distribution function for a standard logistic random variable is a decreasing function.
Answer the following statement true (T) or false (F)
Answer the following statements true (T) or false (F)
1. Rational expectations theory suggests that people make consistent forecasting errors regarding the effects of policy. 2. Mainstream economists contend that monetary policy tends to be destabilizing, in contrast to monetarists who believe that monetary policy is a stabilizing factor. 3. An efficiency wage is an above-market wage that spurs greater work effort and gives the firm more profits because of lower wage costs per unit of output. 4. The "efficiency wage" is one possible explanation for rigidities in the economy that leads to economic instability. 5. Monetarists recommend that the supply of money should be increased at a constant rate each year, proportionate with the long-run growth of real output.