Name at least three nonmarket transactions you did in the past week. Explain why each one would be considered a nonmarket transaction.
What will be an ideal response?
Examples will vary, but should show a thorough understanding of nonmarket
transactions. For example, a person could name cleaning his/her room, cooking a meal,
and doing volunteer work for a charity or religious group. Each example involves work
being done that takes time and energy. Also, each activity has a definite result, such as
a clean room, a delicious meal, or helping people in need. However, none of these
activities involves payment. Because of this, none of them would be reflected in GDP.
You might also like to view...
Fiscal expansion
A) stimulates aggregate demand and causes output to decline. B) decreases aggregate demand and causes output to decline. C) stimulates aggregate demand and causes output to rise. D) decreases aggregate demand and causes output to rise. E) decreases government expenditures.
The potential for profit-increasing false advertising is greatest for which of the following goods?
A) a washing machine B) spot carpet cleaner C) hair shampoo D) toothpaste
Draw a production possibilities frontier for an economy, with the axes labeled "military goods" and "peace goods." Indicate the region that is attainable and the region that is not. Explain the shape of the curve-what assumptions did you make in drawing it?
For the purpose of calculating the consumer price index, the basket of goods
a. is kept the same from year to year so that the effects of price changes are isolated from the effect of any quantity changes that might be occurring at the same time. b. is kept the same from year to year; otherwise, the value of the index would remain constant from year to year. c. varies from year to year; otherwise, the value of the index would remain constant from year to year. d. varies from year to year so that consumers' buying patterns are updated in a timely fashion.