Are Social Security payments included in GDP? Explain why or why not
What will be an ideal response?
Social Security payments are considered to be a non production transaction and therefore are not included in GDP. Social Security payments are made by the government to households, but the recipients do not have to contribute to current production to receive these payments.
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Xenonia has a larger supply of labor than Techland. If the labor supply in both the countries increases by the same amount while their capital stocks remain unchanged, ________
A) the increase in Techland's output will be more than the increase in Xenonia's output B) the increase in Xenonia's output will be more than the increase in Techland's output C) Xenonia's income per capita will decrease while Techland's income per capita will increase D) Xenonia's income per capita will increase while Techland's income per capita will decrease
The economic way of thinking assumes
A) people act selfishly. B) people act altruistically. C) people act to promote the projects in which they are interested. D) people do not act at all; they merely react to the environment around them.
Which of the following is(are) indexed to inflation?
A. Standard deduction B. Employer contributions to pensions C. Gifts and inheritances D. None of the answer options are correct.
The Phillips curve shows the trade-off between: a. unemployment and inflation
b. low interest rates and high levels of investment. c. economic growth and inflation. d. consumption and investment.