questions on chap7

questions on chap7 - Questions on Chapter 7 1.In...

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Questions on Chapter 7 1.In calculating GDP, governmental transfer payments, such as social security or unemployment compensation, are: A) not counted. B) counted as investment spending. C) counted as government spending. D) counted as consumption spending. Ans: A 2. "Value added" refers to: A) any increase in GDP which has been adjusted for adverse environmental effects. B) the excess of gross investment over net investment. C) the difference between the value of a firm's output and the value of the inputs it has purchased from others. D) the portion of any increase in GDP which is caused by inflation as opposed to an increase in real output. Ans: C 3. Transfer payments are included in: A) NI. B) PI. C) GDP. D) NDP. Ans: B 4 Transfer payments are: A) excluded when calculating GDP because they only reflect inflation. B) excluded when calculating GDP because they do not reflect current production. C)
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This note was uploaded on 02/24/2012 for the course ECON 180364203 taught by Professor Edwardmcdevitt during the Spring '09 term at UCLA.

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questions on chap7 - Questions on Chapter 7 1.In...

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