Which of the Following Would Not Be Included in the Government

question 112

Multiple Choice

Which of the following would not be included in the government consumption expenditures and gross investment (G) category of GDP?

• A) The payments made to social security recipients.
• B) Expenditures made to repair a highway.
• C) Spending for professors at universities.
• D) The purchase of new china for parliamentary functions.

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Definitions:

Good

An item or service that satisfies a want or need and is available for sale or exchange in the market.

Maximizing Utility

The economic principle that individuals or firms seek to achieve the highest level of satisfaction or benefit from their choices.

Marginal Utility

The increased enjoyment or value gained by a consumer from consuming an extra unit of a good or service.

Price

The amount of money required to purchase a good or service, which is determined by supply and demand.