In the computation of GDP, Social Security payments count as
A) transfer payments and are included in GDP.
B) transfer payments and are not included in GDP.
C) government expenditure on goods and services and are included in GDP.
D) government expenditure on goods and services and are not included in GDP.
B
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Which of the following is most likely to exert the bargaining power of a buyer?
A) Barnes and Noble purchases books from publishers for sale in its online stores. B) Cowgirl Creamery, a small cheese producer, seeks a dairy farm for its organic milk supplies. C) Wal-Mart, the world's largest discount store, seeks vendors to supply products made exclusively for its stores. D) Ground beef producers seek to purchase cattle from ranchers.
Suppose a person with automobile collision insurance is more likely to try to drive on an icy road in the middle of winter than that person would be if he or she didn't have automobile collision. This is an example of
A. adverse selection. B. moral hazard. C. the free-rider effect. D. asymmetric information before exchange. E. none of the above
Which of the following statements concerning stabilization policy is correct?
A) Increasing government spending during an economic boom would be an example of a stabilization policy. B) Increasing taxes during a recession would be an example of a stabilization policy. C) New Keynesian economists are skeptical of the value of stabilization policies. D) Increasing the money supply during a recession is an example of a stabilization policy.
Which is NOT a characteristic of monopolistic competition?
A) small share of market to each firm B) lack of collusion among firms C) few firms in the industry D) independence of each firm's decisions