For the purposes of GDP accounting, government purchases include
A) the purchases of new military equipment.
B) direct transfer payments by the government to other individuals.
C) Social Security payments.
D) welfare payments.
A
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Marginal revenue product can be calculated using the formula marginal product × output price
A) only if the both marginal product of labor and the output price are constant. B) only if the firm has market power in the labor market C) only if output price is constant. D) only if the marginal product of labor is constant.
Answer the following statements true (T) or false (F)
1 . U.S. gross domestic product (GDP) measures the market value of all goods and services produced by Americans in one year. 2. A product that was produced in 2013 and not sold until 2014 is counted as part of GDP in 2013. 3. The value added in an industry includes the wages earned by workers in the industry. 4. The value of a sale of a share of stock is considered to be an investment in national income accounting. 5.Gross private domestic investment can be divided into replacement investment and net investment.