Which of the following is included as government purchases in gross domestic product (GDP)?

Which of the following is included as government purchases in gross domestic product (GDP)?
 a. Social Security payments to elderly citizens
 b. Welfare benefits distributed to the poor
 c. Outright grants from government to recipients
 d. Payments to clerical workers hired by government
  e. Unemployment compensation benefits

QUESTION 2

If a union is able to successfully lobby Congress to limit imports of rival products, and thus to raise the demand (and thus price) for the goods or services they make, then which of the following best describes the outcome?
 a. The supply of labor will increase.
 b. The demand for labor will increase.
  c. The supply of labor will decrease.
  d. The demand for labor will decrease.

QUESTION 3

To close a recessionary gap using fiscal policy, the government can:
 a. increase government spending by the size of the gap.
 b. decrease government spending by the size of the gap.
 c. increase government spending by more than the size of the gap.
  d. increase government spending by less than the size of the gap.
  e. decrease government spending by more than the size of the gap.

QUESTION 4

Distinguish economies and diseconomies of scale. How can the extent to which economies and diseconomies of scale explain the size and number of real world firms in an industry?

QUESTION 5

Which of the following will be included in the current year's gross domestic product (GDP)?
 a. The sale price of equipment produced last year but sold this year
 b. The money spent by Kate on the purchase of new furniture
 c. The money spent by Barney on the purchase of his uncle's house
 d. The sale price of the stock purchased by John
 e. The opportunity cost of the time spent by Bruno cooking lunch for his neighbor

QUESTION 6

According to the economic theory of labor markets, if unions are successful in raising wages, with no accompanying increase in labor productivity, then which of the following is true?
 a. The quantity of labor demanded by profit-maximizing firms will decline.
  b. The quantity of labor demanded by profit-maximizing firms will increase.
  c. The quantity of labor supplied by workers will decline.
  d. There will be a shortage of labor in the unionized labor market.

QUESTION 7

A 0.2 trillion increase in government purchases increases the quantity demanded by 1.0 trillion, price level remaining constant. This additional spending reflects the _____ effect.
 a. recessionary
 b. expansionary
 c. simple spending multiplier
  d. income
 e. substitution