In the Computation of GDP, Social Security Payments Count as

question 30

Multiple Choice

In the computation of GDP, social security payments count as

• A) transfer payments and are not included in GDP.
• B) government expenditure on goods and services and are included in GDP.
• C) transfer payments and are included in GDP.
• D) government expenditure on goods and services and are not included in GDP.

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Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its current assets.

Price-earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings, used to gauge if a stock is over- or under-valued.

Financial Analysis

The evaluation of a company's financial statements and other financial information to assess its performance, stability, profitability, and liquidity.

Sensitivity Analysis

A technique used to determine how different values of an independent variable impact a particular dependent variable under a given set of assumptions.