In calculating GDP, "transfer payments" are
A) included because they are re-valuations of existing wealth.
B) excluded because no goods or services were produced in exchange for them.
C) included because they are payments for labor services.
D) excluded because used goods already counted the year they were produced.
B
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The statement, "My iPhone is worth $300" represents money's function as
A) a standard of deferred payment. B) a unit of account. C) a store of value. D) a medium of exchange.
What effect does a depreciation of the dollar have on real GDP in the United States in the short run?
A) Real GDP will be unaffected by the depreciation of the dollar. B) Real GDP will rise. C) Real GDP will be unchanged, but nominal GDP will rise. D) Real GDP will fall.
An economist estimates that the maintenance of a public recreation center costs $80,000 a year and that the recreation center generates $65,000 a year in revenue from usage fees. From society's point of view, the maintenance of this recreation center is
A. potentially efficient because the value of the gains exceed the value of the losses. B. potentially efficient because no one would be made worse off as a result of maintaining the recreation center. C. inefficient, because everyone in the community pays taxes to support it, but only those who pay fees to use the recreation center benefit. D. efficient because the revenues generated by the recreation center benefit the entire public.
In general in the U.S., persons classified as poor have money income that amounts to
A. less than half the median income. B. three quarters of the median income. C. the median income. D. half the median income.