Using the National Spending Approach to Measuring GDP,the Social Security

question 145

Multiple Choice

Using the national spending approach to measuring GDP,the social security checks the government sends retirees each month get included in GDP as part of:

• A) consumption.
• B) investment.
• C) government purchases.
• D) nothing;they are not included as part of GDP.

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Definitions:

Selling Expense

Costs incurred directly and indirectly in making sales, including advertising, sales staff salaries, and commissions, but not the cost of goods sold.

Period Cost

Expenses that are not directly tied to the production process and are expensed in the period in which they occur.

Salespersons Bonuses

Additional compensation awarded to sales employees based on their performance.

Selling Expense

Costs associated with the marketing and selling of a company's products or services, including advertising and sales personnel expenses.