Which of the Following Does GDP Omit

question 101

Multiple Choice

Which of the following does GDP omit?

• A) Jack purchases $2,300 worth of stock in company X.
• B) Bob mows his lawn and washes and irons his shirts.
• C) Helen receives $4,000 a year in Social Security payments.
• D) a and b
• E) a,b,and c

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Definitions:

Corporate Profits Tax

A tax imposed by governments on the income earned by companies and corporations.

Labor Supply

The total amount of hours employees are ready and capable of working for a specified rate of pay.

Payroll Tax

A tax imposed on employers or employees, and is typically calculated as a percentage of the salaries that employers pay their staff.

Tax Shifting

The process whereby the economic burden of a tax is passed on from one group to another.