In the Computation of GDP, Social Security Payments Count as

question 279

Multiple Choice

In the computation of GDP, social security payments count as

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

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Definitions:

Variable Costs

Costs that vary in total dollar amount as the level of activity changes.

Short-Run Price

The price level of goods or services in a market that is determined over a short period, where some costs can be considered fixed.

Special Price

A discounted rate offered for a product or service outside of its standard pricing.

Differential Cost

The difference in total cost that will result from selecting one alternative over another in decision-making processes.