With Respect to GDP, How Are Welfare Payments Treated

question 66

Multiple Choice

With respect to GDP, how are welfare payments treated?

• A) They are included in GDP because they represent payment for work performed in the past.
• B) They are included in GDP because they represent potential consumption.
• C) They are excluded from GDP because they do not represent current government purchases of goods and services.
• D) They are excluded from GDP because they are not private pensions.

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Definitions:

Percentage

A way of expressing a number as a fraction of 100, used to compare proportions.

Normal Model

A theoretical distribution with a bell-shaped curve, symmetrical about the mean, used in statistics to describe how values of a variable are spread or distributed.

Top 2.5%

Referring to the upper echelon or highest-performing individuals or entities, specifically those in the 97.5th percentile and above.

Normal Model

A probability distribution characterized by its symmetry about the mean, revealing that data is more frequently found near the mean than at greater distances from it.