In the Computation of GDP, Social Security Payments Count as

question 151

Multiple Choice

In the computation of GDP, Social Security payments count as

• A) transfer payments and are included in GDP.
• B) transfer payments and are not included in GDP.
• C) government expenditure on goods and services and are included in GDP.
• D) government expenditure on goods and services and are not included in GDP.

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Definitions:

Tax-Exempt Institutional

Refers to entities or investment products that do not have to pay federal or state income taxes.

Low Dividend Policy

A corporate practice of distributing minimal portions of the company's earnings to its shareholders as dividends.

High Dividends

Refers to stocks or securities that offer a significant dividend payout in relation to their market price, often viewed as an indicator of a company's potential for long-term growth.

Cash Dividends

Payments made by a corporation to its shareholders, usually in the form of cash, out of its profits or reserves.