Social Security Payments by the Government Are NOT Included in GDP

question 43

Multiple Choice

Social Security payments by the government are NOT included in GDP because

• A) Social Security was not yet in place when procedures for calculating GDP were devised.
• B) Social Security is counted as an economic cost and subtracted from output in determining GDP.
• C) income received through Social Security is not directly related to contributions to production.
• D) income received through Social Security is too small to affect GDP.
• E) these payments are in current dollars and GDP is measured in constant dollars.

Know the common strategies used to decrease the chances of making Type I or Type II errors in hypothesis testing.

Understand the importance and impact of offering benefit packages versus wage increases on employee motivation.

Recognize the statutory requirements and impacts of federal laws on employee benefits.

Identify different types of employee benefits and their advantages for both employers and employees.

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Definitions:

Stereotypes

Oversimplified generalizations about a group of people that often do not consider individual differences, leading to misconceptions and biases.

Evolutionary Processes

Natural mechanisms that drive the gradual development of living organisms over generations, such as natural selection and genetic drift.

Relative Deprivation

A sociological theory that posits individuals feel deprived not on the basis of objective conditions, but by comparing their situation to that of others in their community or society.

Discrimination

Unfair or prejudicial treatment of people based on characteristics such as race, age, sex, or disability, rather than merit.