Tom is an organic gardener. For several years, he produced only for his own consumption. Last year, he sold his vegetables at a farmer's market. This year, he sold all of his vegetables to a company producing organic vegetable soup. When is the value of Tom's vegetables included in GDP?
a. None of his production is included in GDP, since it is considered home production
b. Only when he sells his vegetable at the farmer's market.
c. Only when he sells his vegetables to the organic soup company.
d. When he sells his vegetables at the farmer's market and when he sells the vegetables to the organic soup company.
b
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Indicate whether the statement is true or false
A country's easy monetary policy is often used to correct the problem of
A. globalization. B. high taxes. C. unemployment. D. import quotas.
Which of the following will not cause a shift in the demand curve for a good?
A. Income. B. Taste. C. The price of the good itself. D. The prices of other related goods.
Recall the Application about how society will cope with increased demands for entitlement programs to answer the following question(s). This Application addresses the impact of increasing life expectancy and aging populations on the costs of government entitlement programs such as Social Security, Medicare and Medicaid, and examines several possible solutions to the potential problem.According to this Application, in the year 2075, the portion of GDP devoted to spending on Social Security, Medicare and Medicaid is expected to be:
A. significantly less than the share of GDP devoted to these programs today. B. roughly equal to the total amount of GDP today. C. larger than total federal spending's share of GDP today. D. greater than the consumption spending component's share of GDP in 2075.