Government Expenditures for Social Security and Unemployment Insurance Are, for GDP

question 61

Multiple Choice

Government expenditures for Social Security and unemployment insurance are, for GDP accounting purposes, considered:

• A)transfers, and are included in government spending as part of GDP.
• B)transfers, and are not included in government spending as part of GDP.
• C)purchases, and are included in government spending as part of GDP.
• D)purchases, and are not included in government spending as part of GDP.

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Definitions:

Direct Labor-Hours

A measure of the total hours worked directly on a specific job or task, excluding indirect labor involved in general factory supervision or maintenance.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products, calculated before the actual costs are known, based on estimates.

Actual Manufacturing Overhead

The actual indirect costs incurred in the production process, including utilities, depreciation, and maintenance of production facilities.

Manufacturing Overhead

All manufacturing costs that are not directly associated with the production of a product, including indirect materials, indirect labor, and other indirect costs.