Social Security Payments Are

question 224

Multiple Choice

Social Security payments are

• A) included in GDP because they represent payments for work performed in the past.
• B) included in GDP because they represent potential consumption.
• C) excluded from GDP because they are not private pensions.
• D) excluded from GDP because they do not reflect the economy's production.

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Definitions:

Soft Rationing

Refers to the internal limitations set by a company on the funds allocated for capital projects, despite having a strong financial position.

Hard Rationing

A situation in corporate finance where there is a strict limit on the amount of new equity a company can issue.

Operating Cash Flow

Operating cash flow refers to the cash generated by a company's normal business operations, indicating whether a company is able to generate sufficient positive cash flow to maintain and grow its operations.

Variable Costs

Expenses that change in proportion to the amount of goods produced or the extent of services rendered.