Transfer payments are
a. included in GDP because they represent income to individuals.
b. included in GDP because they eventually will be spent on consumption.
c. not included in GDP because they are not payments for currently produced goods or services.
d. not included in GDP because taxes will have to be raised to pay for them.
c
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Which of the following correctly defines the term "equilibrium"?
A) It refers to analysis that uses data to arrive at conclusions. B) It refers to a situation where all agents are simultaneously optimizing. C) It refers to an optimizing decision made by an individual economic agent. D) It refers to government intervention that efficiently allocates scarce resources.
Perfect competition
A) has many sellers. B) homogenous products. C) free entry and exit. D) all of these choices.