Transfer payments are excluded from government purchases in GDP accounting because
A) they are a reward to individuals who have been productive their entire lives.
B) they are difficult to measure.
C) nothing is being produced in return for the payment.
D) they are already included as part of investment.
C
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Cigarettes, Children, and the FDA
- Provide a number of reasons justifying government intervention in the economy. Based on your reading of the requirements specified by this rule, which of these reasons applies to this FDA rule?
- Why would cigarette manufacturers have an incentive to target children in their advertising campaigns?
- Why are free samples and the sale of small packages of cigarettes banned by this rule?
Discount lending by the Fed:
A. amounts to five billion dollars in volume during an average week. B. is usually small except in times of crisis. C. is more important today than in years past. D. is the key component of monetary policy.
Deregulation will cause the Phillips curve to shift to the right.
Answer the following statement true (T) or false (F)
Which of the following is a desirable characteristic in an economy?
A. high inflation B. low unemployment C. rapid increase in the general price level D. low employment