With Respect to GDP, How Are Welfare Payments Treated

question 66

Multiple Choice

With respect to GDP, how are welfare payments treated?

• A) They are included in GDP because they represent payment for work performed in the past.
• B) They are included in GDP because they represent potential consumption.
• C) They are excluded from GDP because they do not represent current government purchases of goods and services.
• D) They are excluded from GDP because they are not private pensions.

---

Definitions:

1950s

A decade marked by post-World War II recovery, significant cultural shifts, economic prosperity in the West, and the heightening of the Cold War.

Suburban Middle-Class

A socioeconomic group characterized by moderate income and standard of living, typically residing in suburban areas outside of major urban centers.

Women

Adult human females, often highlighted in discussions of rights, equality, and social roles historically and in contemporary society.

Missile Gap

A term primarily used during the Cold War to refer to a perceived superiority in the number and power of the USSR's missiles compared to those of the USA.