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Need some help on homework

Hello! Had some homework problems, just seeing if they're correct and what I can learn if they're not correct

1. The circular flow diagram from GDP:
a. can be computed as either the revenue firms receive from sales or payments they make to factors of production
b. can be computed as either the revenue firms receive from sales, but not as payments they make to factors of production
c. can be computed as either the payments firms make to factors of production, not as revenues from their sales of goods
d. cannot be computed as either the rev firms make or payments they make to factors of production

I think it's C.

2. Susan buys a 1958 car she saw in the newspaper. She purchases new parts and spends 180 hours refurbishing the car. What is included in GDP?
a. Amount she paid for the car
b. Amount she paid for the new parts
c. Value of her time repairing the car
d. All of the above

I think it's B

3. Does U.S. GDP include production of foreigners working in the U.S. and excludes production of U.S. residents working in foreign countries. TRUE or FALSE?

I think it's true.

4. Transfer payments:
a. payments that go from gov't to households
b. aren't made in exchange for currently produces goods
c. alter household income, however doesn't reflect the economy's production.

I think it's B.

Thank you for your time!

Reply 1

Prospective UK

No.3 I'm pretty sure it's true because GDP (domestic) means any activities done in each specific country regardless of the nationality of people.

Sorry for being unable to help with three others. ^_^

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