A good that would be counted as consumption in GDP would be the:
A. Subway sandwich Tony ate for lunch.
B. common stock Tony purchased for his 401(k).
C. $10 Tony received after winning a bet with his friend.
D. $50 in wages Tony received that day from working all afternoon.
Answer: A
You might also like to view...
"For whom is a given mix of goods and services to be produced? How, in other words, are the society's outputs to be distributed among its members?" In a market economy, this question is resolved primarily in the:
A. Public sector through the mechanism of central planning B. Business sector through the mechanism of advertising C. Private sector through the earning and spending of income D. Money market through borrowing and saving by households and businesses
Suppose two neighbors share a park. One neighbor, Al, leaves trash in the park. This bothers the other neighbor, Bert. According to Coase's Theorem, the optimal level of trash in the park can be achieved if
A) Al is fined by the government. B) Al has the right to leave trash and Bert cannot do anything about it. C) Al has the right to leave trash and Bert can pay him to limit his dumping. D) Bert moves.
Unilateral transfers between countries are
A) long-term loans. B) only international gifts, never payments that do not correspond to the purchase of any good, service, or asset. C) part of the current account but not a part of national income. D) known for reducing the income of capital owners. E) the difference between Y and GNP if the identity Y = C + I + G + CA holds exactly.