Transfer Payments Are Excluded from the Government Component in the Calculation

question 65

Multiple Choice

Transfer payments are excluded from the government component in the calculation of GDP because

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

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Definitions:

Navicular

Refers to the navicular bone in the foot, involved in forming the arch of the foot, or the navicular bone in the wrist.

Medial Malleolus

The bony prominence on the inner side of the ankle, part of the tibia's distal extremity, contributing to the ankle joint's stability.

Lateral Malleolus

The hard protrusion located on the external part of the ankle, which constitutes the bottom portion of the fibula.

Radial Styloid Process

A bony protrusion at the distal end of the radius bone in the forearm, which is palpable on the thumb side of the wrist.