The Government Purchases Component of GDP Includes

question 135

Multiple Choice

The government purchases component of GDP includes:

• A)purchases of final goods and services.
• B)interest payments on government debt.
• C)transfer payments.
• D)payments made to social security recipients.

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Definitions:

Net Working Capital

A measure of a company's short-term liquidity, calculated as current assets minus current liabilities.

Turnover Rate

The rate at which a company hires and separates employees, or the rate at which inventory or assets are replaced through sales.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials and labor costs.

Use Of Cash

A summary of how a company's cash is being utilized in operations, investments, and financing activities.