1.The government purchases components of GDP do not include spending on transfer payments. Thinking about the definition of GDP, explain why transfer payments are excluded?

2.GDP does not include the value of used goods that are resold. Why would including such transactions make GDP a less informative measure of economic well-being?

3.Some economist argues for lengthening patent protection while some economist argues for shortening it. Why might patents increase productivity? Why might they decrease productivity?