51.Transferpayments a.arepaymentsthatflowfromgovernmenttohouseholds. b.arenotmadeinexchangeforcurrentlyproducedgoodsorservices. c.alterhouseholdincome,buttheydonotreflecttheeconomy’sproduction. d.Alloftheabovearecorrect. 52.Atransferpaymentisapaymentmadeby a.consumers,butnotinexchangeforatangibleproduct. b.firms,butnotinexchangeforcapitalequipment. c.foreigners,butnotinexchangeforadomestically-producedgoodorservice. d.government,butnotinexchangeforacurrentlyproducedgoodorservice. 53.Transferpaymentsare a.includedinGDPbecausetheyrepresentincometoindividuals. b.includedinGDPbecausetheyeventuallywillbespentonconsumption. c.notincludedinGDPbecausetheyarenotpaymentsforcurrentlyproducedgoodsorservices. d.notincludedinGDPbecausetaxeswillhavetoberaisedtopayforthem. 54.Whichofthefollowingrepresentsatransferpayment? a.Youtransfer$1,000fromyourbankaccounttoamutualfund. b.ThegovernmentsendsyourgrandfatherhisSocialSecuritycheck. c.Youmakeapaymenttogetlegaldocumentsshowingyoupurchasedapreviouslyownedhome. d.Youremployerautomaticallytransfers$100eachmonthfromyourwagestoanon-taxablemedicalspendingaccount. 55.SocialSecuritypaymentsare a.includedinGDPbecausetheyrepresentcurrentincome. b.includedinGDPbecausetheyrepresentpotentialconsumption. c.excludedfromGDPbecausetheyarenotprivatepensions. d.excludedfromGDPbecausetheydonotreflecttheeconomy’sproduction. 56.Unemploymentcompensationis a.partofGDPbecauseitrepresentsincome. b.partofGDPbecausetherecipientsmusthaveworkedinthepasttoqualify. c.notpartofGDPbecauseitisatransferpayment. d.notpartofGDPbecausethepaymentsreducebusinessprofits. 57.Toencourageformationofsmallbusinesses,thegovernmentcouldprovidesubsidies;thesesubsidies a.wouldbeincludedinGDPbecausetheyarepartofgovernmentpurchases. b.wouldbeincludedinGDPbecausetheyarepartofinvestmentexpenditures. c.wouldnotbeincludedinGDPbecausetheyaretransferpayments. d.wouldnotbeincludedinGDPbecausethegovernmentraisestaxestopayforthem. 58.AftertheterroristattacksonSeptember11,2001,governmentswithintheUnitedStatesraisedexpenditurestoincreasesecurityatairports.Thesepurchasesofgoodsandservicesare a.notincludedinGDPsincetheydonotrepresentproduction. b.notincludedinGDPsincethegovernmentcollectstaxestopayforthem. c.includedinGDPsincegovernmentexpendituresongoodsandservicesareincludedinGDP. d.includedinGDPonlytotheextentthatthefederalgovernment,ratherthanstateorlocalgovernments,paidforthem. 59.Whichofthefollowingitemsiscountedaspartofgovernmentpurchases? a.Thefederalgovernmentpays$2,000inSocialSecuritybenefitstoaretiredperson. b.ThecityofAthens,Ohiopays$10,000toatree-trimmingfirmtotrimtreesalongcityboulevards. c.ThestateofNebraskapays$1,000tohelpalow-incomefamilypayitsmedicalbills. d.Alloftheabovearecorrect. 60.TheU.S.governmentpaysaneconomistattheU.S.DepartmentofCommerce$100,000insalaryin2013.Theeconomistthenretires.In2014,thegovernmentpayshim$60,000inSocialSecuritybenefits.Whichofthefollowingiscorrect? a.The2013paymentisincludedin2013GDPasgovernmentpurchases,andthe2014paymentisincludedin2014GDPasgovernmentpurchases. b.The2013paymentisincludedin2013GDPasgovernmentpurchases,butthe2014paymentisnotincludedin2014GDP. c.The2013paymentisincludedin2013GDPasgovernmentpurchases,andthe2014paymentisincludedin2014GDPasgovernmenttransferpayments. d.The2013paymentisincludedin2013GDPasgovernmentpurchases,andthe2014paymentisallocatedtopreviousyears’GDPaccordingtotheamountofworkperformedbytheeconomisteachyear.    

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