Why are transfer payments not included in GDP?
A) The amount is too low to have any effect.
B) Unemployment varies and can't be tracked.
C) Money companies receive from the government isn't reported.
D) They do not represent payments to those who contributed resources to currently produced goods or services.
D
You might also like to view...
An industry is made up of 8 firms with the following percent market shares: 29, 20, 11, 10, 9, 8, 7, 6. What is the Herfindahl-Hirschman index in this industry?
A) 70 B) 100 C) 1462 D) 1692
Suppose a local bookstore notices that a 2 percent increase in book prices leads to a 2 percent decrease in the number of books sold. Which of the following is true?
a. Demand for books is price elastic. b. The store's sales revenue did not change. c. Demand for books is price inelastic. d. Demand for books is perfectly inelastic. e. The bookstore could increase revenue by further lowering prices.