An Example of an Item That Would Be Excluded from a Measure

question 62

Multiple Choice

An example of an item that would be excluded from a measure of GDP from the expenditure side is

• A)the purchase of windows by an automobile assembly plant.
• B)fertilizer purchased by Farmer Jones to increase crop yields.
• C)buying tomato plants for your garden.
• D)government pension payments to a retired person.
• E)a new truck purchased by a furniture-delivery company.

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Definitions:

PATCO Strike

Refers to the 1981 strike by the Professional Air Traffic Controllers Organization in the United States, which resulted in the firing of striking employees.

Labor Relations

The professional and legal relationship between employees and employers, focusing on collective bargaining, union activities, and workplace disputes.

Permanent Strike Replacements

Workers hired to permanently take the positions of employees who are on strike, often used by employers as a strategy to undermine strike effectiveness.

Bargaining Power

The advantage one party has over the other in negotiations, often derived from one's ability to influence the outcome or offer something of value.