Why Are Transfer Payments Excluded from the Government Component (G_a)in

question 101

Multiple Choice

Why are transfer payments excluded from the government component (G_a) in the calculation of GDP?

• A)Because they do not represent the purchase of a good or a service.
• B)Because they are not counted as income by any economic agent.
• C)Because they do not generate additional income in the economy.
• D)Because it is difficult to assess the market value of a transfer payment.
• E)Because they are small enough to ignore when computing the national accounts.

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Definitions:

Group Members

Group members refer to individuals who belong to a specific collective or team, each potentially contributing diverse perspectives and skills towards achieving common goals.

Dramatistic Pentad

Kenneth Burke’s core questions of act, scene, agent, agency, and purpose for analysis of motives.

Symbolic Convergence

The condition of group members being in agreement on the organizational symbolism or stories that unite them.

Group Members

Individuals who belong to a specific group or team that shares common goals, tasks, or interests.