• An academic economist from UC Berkeley told a congressional committee that if the United States doubled its real GDP, it would be a much less livable society than it is today. Explain this view.

• The expanding "underground" economy creates problems for economic policy makers. Explain.

• What is the difference between government purchases of goods and services and government transfer payments? Give at least three examples of each. Can you think of any purchase or payment that skirts the boundary between the two?