Which of the Following Transfer Payments Is Included in GDP

question 80

Multiple Choice

Which of the following transfer payments is included in GDP?

• A) Social Security payments
• B) welfare payments
• C) veteran's benefits
• D) none of the above

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Definitions:

Gross Profit

The difference between sales revenue and the cost of goods sold, before deducting overhead, payroll, taxation, and interest payments.

Cost of Goods Sold

The total direct costs incurred in producing goods which are sold, including materials and labor.

Current Asset

An asset that is expected to be converted into cash, sold, or consumed within one year or the operating cycle, whichever is longer.

Long-Term Liabilities

Long-Term Liabilities are financial obligations of a business that are due more than one year in the future, such as bonds payable or long-term loans.