Interest paid by households and by the government is
A. not counted in GDP because it is not assumed to flow from the production of goods and services.
B. not counted in GDP but is counted in GNP because it is paid by U.S. citizens to people living in the United States.
C. counted in national income, but not in GDP.
D. included in both GDP and GNP because it represents an expenditure by one group and a receipt of income by another group.
Answer: A
You might also like to view...
What term is used to denote costs that rise and fall depending on the rate of production?
a. implicit costs b. variable costs c. average costs d. fixed costs
Suppose coffee is sold in a monopolistically competitive market, where coffee is differentiated by coffee shop location. As firms enter in the long run and the price of coffee falls:
A. the market quantity of coffee demanded will increase, but the quantity of coffee supplied by any individual coffee shop declines. B. the market quantity of coffee demanded will decrease as does the quantity supplied from any individual coffee shop. C. the average costs of production decline. D. the profits of individual coffee shops increase.
The growth of GDP may understate changes int he economy's well-being over time if the:
What will be an ideal response?
If the price of bananas goes down, then the demand for pears will
A. remain constant, assuming bananas and pears are related goods. B. decrease, assuming bananas and pears are substitutes. C. decrease, assuming bananas and pears are complements. D. increase, assuming bananas and pears are substitutes.