Answer:
Excluded when calculating GDP because they do not reflect current production.
Explanation:
Transfer payments such as medicare, social security, medicaid, unemployment benefits, and other welfare programs are not calculated in GDP because they do not represent government purchases of goods and services, or in other words, they do not reflect goods and services currently produced and purchased.
They are instead, resources that the government takes either in the form of taxes, debt, or money supply, and allocates, or transfers, to specific recipients.
Answer:
c. high because buyers generally feel that they can do without it
Explanation:
Income elasticity of demand measures the degree of responsiveness of quantity demanded of a product with respect to the change in the income of the consumer, keeping other factors affecting demand as constant.
It is represented as
=
A High income elasticity of demand conveys, a rise in the income of the consumer is accompanied by a higher increase in the quantity demanded. Similarly, a fall in the income of the consumer is accompanied by a greater fall in the quantity demanded.
Caviar fish is expensive and would be usually characterized as a luxury. Thus, if the income of the consumer falls, he will end up forgoing relatively higher quantity of caviar since the consumer believe it to be easier to do away without it.