Question 15 Not yet answered Marked out of 1 Not flaggedFlag

Question 15 Not yet answered Marked out of 1 Not flaggedFlag question Question text Summing up all spending on all final goods and services that a country produced over a year gives us Select one: a. GDP using the expenditure method b. GDP using the income method c. GNP using the expenditure method d. GNP using the income method

Question 16 Not yet answered Marked out of 1 Not flaggedFlag question Question text Which of the following is NOT a transfer payment? Select one: a. Food assistance in a prepaid debit card b. Social Security supplementary income c. Government-subsidized housing d. Payments into a 529 education-saving plan

Question 17 Not yet answered Marked out of 1 Not flaggedFlag question Question text Use information in NBER’s Business Cycle Contractions and Expansions, http://www.nber.org/cycles/cyclesmain.html. The longest economic contraction that the USA has undergone occurred in Select one: a. 1870’s b. 1880’s c. 1930’s d. 2000’s

Solution

(15) (a)

GDP is the total value of all final goods & services produced in a country in a period.

(16) (a)

A transfer payment is a unilateral transfer from government to the beneficiaries. Food assistance is a bilateral transaction because, even though food assistance is being given, it\'s given against a prepaid debit card.

(17) (c)

1930s economic contraction has lasted more than the other contractions. This period is termed as the Great Depression due to its prolonged severity.