GDP Does NOT Include _____

question 158

Multiple Choice

GDP does NOT include _____.

• A) government purchases
• B) investment by firms
• C) consumption spending
• D) transfer payments

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Definitions:

Similar Asset

An asset that has comparable characteristics and functionality to another asset, often considered when evaluating replacements or equivalents.

Trade-In Allowance

The amount a seller allows a buyer for a fixed asset that is traded in for a similar asset.

Commercial Substance

Commercial substance is a concept in accounting that indicates a transaction significantly changes the economic situation of the parties involved.

Trade-In Allowance

The amount a seller credits to a buyer when the buyer returns a previously purchased item as part of the payment for a new item.