Which of the following statements is FALSE?
A. Private transfer payments, such as an inheritance, are included in the Gross Domestic Product (GDP).
B. If statisticians counted intermediate goods, the estimate of Gross Domestic Product (GDP) would be too high.
C. Transfers of used goods are not included in Gross Domestic Product (GDP).
D. Gross Domestic Product (GDP) measures the market value of final goods and services produced during a particular time period.
Answer: A
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Neither the supply of nor demand for a good is perfectly elastic or perfectly inelastic. So, imposing a tax on the good results in ________ in the price received and kept by sellers and a ________ in the price paid by buyers
A) a rise; rise B) a rise; fall C) a fall; rise D) a fall; fall E) no change; rise
One of the consequences of inflation between 1950 and the 1970s was ________
A) a large increase in the federal deficit as a percentage of GDP B) a relaxation of the government budget constraint C) an increase in the dependency ratio D) a reduction in the ratio of debt to GDP