GDP understates the amount of economic production in the United States because it excludes:
A.
Spending for the U.S. military
B.
Transfer payments
C.
Purchases of stocks and bonds
D.
Work performed by people for their own benefit
D.
Work performed by people for their own benefit
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Which of the following best defines capital as a factor of production?
A) the gifts of nature that businesses use to produce goods and services B) the knowledge and skills that people obtain from education and use in production of goods and services C) financial assets used by businesses D) instruments, machines, and buildings used in production
Which of the following statements about the price elasticity of demand is correct?
a. The price elasticity of demand for a good measures the willingness of buyers of the good to buy less of the good as its price increases. b. Price elasticity of demand reflects the many economic, psychological, and social forces that shape consumer tastes. c. Other things equal, if good x has close substitutes and good y does not have close substitutes, then the demand for good x will be more elastic than the demand for good y. d. All of the above are correct.
One of the objectives of the health-care reform bills passed in March 2010 was to bring _____________ people into the pool of insured persons so that insurance policies would become ________________. However, provisions in the bill are likely to make the average cost of an insurance policy _____________ than it would have been without reform
A) fewer; cheaper; lower B) fewer; more expensive; lower C) more; cheaper; lower D) more; cheaper; higher E) none of the above
The delay between the time at which an event occurs and the time at which policymakers become aware of it is called
A) the impact lag. B) the implementation lag. C) the government lag. D) the recognition lag.