Under the expenditure approach to GDP accounting, government purchases of goods and services include welfare payments
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
The graph shows the market for textbooks. If the government introduces a tax of $20 a textbook, then the price paid by buyers
A) increases by $20. B) increases to $80 a textbook. C) decreases to $60 a textbook. D) is $70 a textbook. E) does not change because the demand for textbooks is perfectly elastic.
If a bank has excess reserves of $10,000 and demand deposit liabilities of $80,000, and if the reserve requirement is 20 percent, then the bank has actual reserves of
A) $16,000. B) $20,000. C) $26,000. D) $36,000.
A potential problem with paying workers based on a piece rate is that:
A. workers will attempt to produce quality at the expense of quantity. B. workers will attempt to produce quantity at the expense of quality. C. effort cannot be expended engaging in quality control. D. effort should not be expended engaging in quality control.
If a market has no externalities, marginal private costs:
A. exceed marginal social costs. B. are below marginal social costs. C. intersect marginal social costs. D. equal marginal social costs.