Compare and Contrast Formative and Summative Measurements

question 80

Essay

Compare and contrast formative and summative measurements.Identify the different uses of formative and summative tests in your answer.

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Definitions:

Government Purchases Component

The part of gross domestic product (GDP) that includes spending by all levels of government on goods and services.

Social Security Benefits

Government payments made to eligible individuals, such as retirees or disabled workers, as part of a social insurance program.

Investment Component

The portion of GDP or economic output that is attributed to investment in physical assets, like buildings, equipment, and inventory.

Financial Investment

The allocation of resources into financial assets, such as stocks, bonds, or real estate, with the expectation of receiving future returns.