Which One of the Following Transactions in a Particular Year

question 228

Multiple Choice

Which one of the following transactions in a particular year is included in gross domestic product for that year?

• A) The government pays a computer services company that assisted in the delivery of Social Security payments to retirees.
• B) A car is produced in the previous year and remains in inventory for the entire year under consideration.
• C) A stay-at-home parent performs housework that the family would otherwise have paid a maid $20,000 a year to perform.
• D) Social Security payments to retirees

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Definitions:

Innovation

The process of creating, developing, and implementing new products, processes, or ideas to improve efficiency, effectiveness, or competitive advantage.

Aging Population

refers to the demographic trend of an increasing average age in a population, often resulting in higher proportions of elderly people and various social and economic implications.

Stagnating Wages

The phenomenon where wages remain constant over time without significant increases, often leading to decreased purchasing power due to inflation.

Steady Interest Rates

A condition where interest rates remain the same over a period of time, leading to predictable financing costs.