Which of the Following Would NOT Be Included in GDP

question 25

Multiple Choice

Which of the following would NOT be included in GDP as government purchases?  

• A) The local township repairs the roads. 
• B) The government sends out welfare cheques. 
• C) The government pays a lawyer as a public defender. 
• D) The government buys computer time.

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Definitions:

Invisible Hand

A term introduced by Adam Smith to describe the self-regulating nature of the marketplace, where individual self-interests benefit society as a whole.

Competition

The rivalry among businesses to attract customers, which can lead to improved quality, lower prices, and innovation.

Social Interest

The welfare or well-being of the general public and society at large, considering the collective needs rather than individual interests.

No Personal Financial Responsibility

A situation where individuals do not bear direct financial consequences for their actions, often due to insurance, subsidies, or other protective measures.