When Calculating the Compensation of Employees Part of GDP

question 64

Multiple Choice

When calculating the compensation of employees part of GDP

• A) Social Security contributions must be included.
• B) fringe benefits are not included.
• C) taxes withheld on earnings are not included.
• D) the value of vacation time must be included.

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Definitions:

Interest Rates

The cost of borrowing money or the compensation for the service and risk of lending money, expressed as a percentage of the principal loan amount.

Interest

The price paid for borrowing money, often expressed as a percentage of the principal amount over a certain period.

Net Present Value

A financial metric that calculates the current value of a series of future cash flows by discounting them back to the present time.

Interest Rate

The part of a loan that accrues interest for the borrower, customarily denoted as a yearly percentage of the loan's outstanding sum.