Consider Canada's National Accounts

question 4

Multiple Choice

Consider Canada's national accounts.An example of a transfer payment is

• A)government payments of salaries to schoolteachers.
• B)government spending on military equipment.
• C)pensions paid from the Canada Pension Plan.
• D)private firms' payments of dividends.
• E)government payments of salaries to Members of Parliament.

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Definitions:

Demand

How much of a product or service buyers can and are prepared to buy at varying prices within a specific period.

Monopoly

A market structure characterized by a single seller, selling a unique product in the market with no close substitutes.

Production Function

An equation that specifies the output that can be produced by varying amounts of inputs, demonstrating how efficiently these inputs are converted into outputs.

Labor

The human effort, either physical or mental, used in the production process to create goods or provide services.