Payments to Households Not in Exchange for Goods and Services

question 37

Multiple Choice

Payments to households not in exchange for goods and services currently produced are:

• A) transfer payments.
• B) government purchases.
• C) consumption expenditures.
• D) investment expenditures.

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Definitions:

Operating Income

EBIT, which stands for Earnings Before Interest and Taxes, indicates a firm's profit derived specifically from its primary business activities.

Investment Turnover

A measure of a company's efficiency in using its assets to generate sales revenue; calculated as sales divided by the investment in assets.

Return on Investments

A metric for assessing how effectively an investment generates returns in comparison to its expense.

Controllable Revenues

Revenues over which a manager or department has influence or direct control, often used in performance evaluation and budgeting.