Unemployment Compensation Is

question 168

Multiple Choice

Unemployment compensation is

• A)part of GDP because it represents income.
• B)part of GDP because the recipients must have worked in the past to qualify.
• C)not part of GDP because it is a transfer payment.
• D)not part of GDP because the payments reduce business profits.

Understand and calculate the working capital for a given period.

Analyze and compute the average collection period.

Understand and determine the acid-test (quick) ratio.

Analyze and calculate the current ratio.

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Definitions:

Inflation Rate

The rate in percentage terms that indicates how quickly the average price level of goods and services escalates, diminishing the buying power.

Market Basket

A fixed list of items used to track the progress of inflation in an economy or to compare prices over time.

CPI

The Consumer Price Index, a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, typically used to assess changes in the cost of living.

Standard of Living

The extent of financial well-being, luxury, material objects, and fundamental requirements available to an identified socioeconomic class or geographical zone.