Rachel babysits for her sister for no pay. When she babysits for someone else she charges $8 an hour. When is Rachel’s babysitting included in GDP?______________
A. When she babysits for her sister and when she babysits for someone else.
B. When she babysits for her sister, but not when she babysits for someone else.
C. When she babysits for someone else, but not when she babysits for her sister.
D. Neither when she babysits for her sister nor for someone else.
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Which of the following is not included in GDP?______________
A. carrots grown in your garden and eaten by your family
B. carrots purchased at a farmer’s market and eaten by your family
C. carrots purchased at a grocery store and eaten by your family
D. None of the above are included in GDP.
For the purpose of calculating GDP, investment is spending on______________
A. stocks, bonds, and other financial assets.
B. real estate and financial assets such as stocks and bonds.
C. capital equipment, inventories, and structures, including household purchases of new housing.
D. capital equipment, inventories, and structures, excluding household purchases of new housing.
Which of the following items is included in GDP?______________
A. the sale of stocks and bonds
B. the sale of used goods
C. the sale of services such as those performed by a doctor
D. All of the above are included in GDP.
Transfer payments______________
A. are payments that flow from government to households.
B. are not made in exchange for currently produced goods or services.
C. alter household income, but they do not reflect the economy’s production.
D. All of the above are correct.
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