Practice Questions
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Which of the following best describes the impact of transfer payments on GDP?
Transfer payments are money given by the government to people without getting anything in return. Other options are incorrect because Some might think...
How do transfer payments impact GDP in the context of fiscal policy and inflation effects?
Transfer payments, like welfare or unemployment benefits, do not pay for goods or services. Other options are incorrect because Some might think that ...
How do transfer payments influence consumption expenditure and the multiplier effect in an economy?
Transfer payments, like welfare or unemployment benefits, give people money to spend. Other options are incorrect because Some might think that transf...
How do transfer payments influence GDP and economic growth in the context of fiscal policy?
Transfer payments help people buy things. Other options are incorrect because Some might think transfer payments directly boost GDP; It's a common bel...
How do transfer payments, such as those from social welfare programs, impact GDP when considering income redistribution and economic stimulus?
Transfer payments help people buy things they need. Other options are incorrect because Some think that government spending always lowers GDP; It's a ...
Which of the following is an example of a transfer payment that does not directly contribute to GDP?
Transfer payments, like Social Security, give money to people without getting goods or services in return. Other options are incorrect because Some mi...
Which of the following best describes how transfer payments affect Gross Domestic Product (GDP)?
Transfer payments, like welfare or unemployment benefits, give money to people but do not create goods or services. Other options are incorrect becaus...
Which of the following best describes how transfer payments affect the Gross Domestic Product (GDP)?
Transfer payments, like welfare or unemployment benefits, are not for goods or services. Other options are incorrect because Some might think that all...
Transfer payments are excluded from GDP calculations because they represent _____.
Transfer payments are money given to people without expecting anything in return. Other options are incorrect because Some might think these payments ...
Why are transfer payments excluded from GDP calculations despite their impact on consumer spending?
Transfer payments are money given without any goods or services being made. Other options are incorrect because Some might think all government paymen...
Transfer payments are to GDP calculations as: A. Personal savings are to national income B. Sales taxes are to consumer spending C. Government investments are to public goods D. Charitable donations are to private sector production
Transfer payments, like welfare, help people but don't count in GDP. Other options are incorrect because Some might think savings are like transfer pa...
Which of the following best explains why transfer payments are classified as non-productive in the context of GDP calculations?
Transfer payments are money given without a trade for goods or services. Other options are incorrect because Some might think that giving money boosts...
Why are transfer payments excluded from GDP calculations?
Transfer payments are money given without getting anything back. Other options are incorrect because This idea suggests that only rich people receive ...
Which of the following statements correctly explain why transfer payments are excluded from GDP calculations? Select all that apply.
Other options are incorrect because This option suggests that transfer payments don't involve goods or services; This option says transfer payments ar...
Maria receives unemployment benefits from the government after losing her job. Which of the following statements best explains why these benefits are not included in the GDP calculation?
Transfer payments, like unemployment benefits, are money given without any goods or services being produced. Other options are incorrect because This ...
Why are transfer payments excluded from GDP calculations despite their impact on the economy?
Transfer payments are money given without getting goods or services in return. Other options are incorrect because Some might think these payments are...
Order the following steps to explain why transfer payments are excluded from GDP calculations: A) Transfer payments are received by individuals without any exchange of goods or services. B) GDP measures economic production and the provision of goods and services. C) Including transfer payments would inflate GDP figures inaccurately. D) Therefore, transfer payments do not reflect actual economic activity.
Transfer payments are money given to people without getting anything back. Other options are incorrect because This order suggests that GDP measures p...
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