Author Question: A bundle of goods that costs 1 in the U.S. is worth 5 units in Country A's currency. If Country A's ... (Read 91 times)

WWatsford

  • Hero Member
  • *****
  • Posts: 539
    • Biology Forums!
A bundle of goods that costs 1 in the U.S. is worth 5 units in Country A's currency. If Country A's GDP in its own currency is 5,000,000 units, Country A's GDP in purchasing power parity-adjusted dollars is ________.
 
  A) 1,000,000 B) 50,000,000 C) 2,500,000 D) 3,000,000

Question 2

Define transfer payments and explain why they are not included in the government purchases section of the GDP accounts.
 
  What will be an ideal response?


C.mcnichol98

  • Sr. Member
  • ****
  • Posts: 314
Answer to Question 1

A

Answer to Question 2

Transfer payments are funds paid to individuals that are not associated with the production of goods and services. They are not included in the government purchases section of the GDP accounts because nothing is being produced in return for the payment. However they do show up in the accounts indirectly when they are spent (and saved) by their recipients; thus they do appear in the consumption (and saving) section of the accounts.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Approximately 70% of expectant mothers report experiencing some symptoms of morning sickness during the first trimester of pregnancy.

Did you know?

The first oncogene was discovered in 1970 and was termed SRC (pronounced "SARK").

Did you know?

Cyanide works by making the human body unable to use oxygen.

Did you know?

Individuals are never “cured” of addictions. Instead, they learn how to manage their disease to lead healthy, balanced lives.

Did you know?

People who have myopia, or nearsightedness, are not able to see objects at a distance but only up close. It occurs when the cornea is either curved too steeply, the eye is too long, or both. This condition is progressive and worsens with time. More than 100 million people in the United States are nearsighted, but only 20% of those are born with the condition. Diet, eye exercise, drug therapy, and corrective lenses can all help manage nearsightedness.

For a complete list of videos, visit our video library