When Looking at the Economic Impact of the Terrorist Attacks

question 21

Multiple Choice

When looking at the economic impact of the terrorist attacks, you will find that GDP

• A)was negatively affected by increases in defense and homeland security expenditures.
• B)was unaffected by increases in defense and homeland security expenditures.
• C)was positively affected by increases in defense and homeland security expenditures.
• D)data collectors initially denied the authenticity of defense and homeland security expenditures.

---

Definitions:

Tax

A compulsory financial charge or some other type of levy imposed by a governmental organization on individuals or entities to fund public expenditures.

Price

The sum of money needed to buy a product, service, or property.

Producer Surplus

The difference between the amount producers are willing to sell a good for and the higher price they actually receive.

Tax

A compulsory financial charge or some other type of levy imposed on a taxpayer by a governmental organization in order to fund government spending and various public expenditures.