The Government Component (G) of Total Output Includes Goods and Services

question 201

Multiple Choice

The government component (G) of total output includes goods and services purchased by

• A)the federal government plus transfer payments.
• B)all government institutions plus transfer payments.
• C)all government institutions.
• D)all government institutions plus tax revenues.

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Definitions:

Quarterly Estimated Payments

Tax payments made each quarter by self-employed individuals and others who do not have taxes withheld from their income.

Estimated Payment

Periodic payments made towards expected tax liability before the due date to avoid penalties.

Subchapter S Corporation

A form of corporation that meets specific Internal Revenue Code requirements, offering the benefits of incorporated status while being taxed as a pass-through entity, avoiding double taxation.

Ordinary Loss

A loss incurred in the normal operation of a business that can be used to offset other types of income for tax purposes.