Government Transfer Payments Are NOT Included When Computing GDP Via

question 22

Multiple Choice

Government transfer payments are NOT included when computing GDP via the expenditures approach because they are

• A) included when computing GDP via the income approach.
• B) payments to foreigners for the goods we import.
• C) expressed in current rather than constant dollar terms.
• D) not payments for current production.
• E) incapable of affecting the economic well-being of households.

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Definitions:

Canadian Tariff

A tax imposed by the Canadian government on imported goods to protect domestic industries or to generate revenue.

French Wine

Wine produced in the various wine regions of France, known worldwide for its quality and variety.

Price Of Wine

The amount of money required to purchase a specific amount or bottle of wine, influenced by factors like quality, brand, and production costs.

U.S. Goods

Products that are manufactured or produced within the United States.