Which of the Following Would Not Be Included in GDP

question 177

Multiple Choice

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

• A)The local township repairs the roads.
• B)The state government funds a state university.
• C)The federal government sends out Social Security checks.
• D)The federal government pays a lawyer as a public defender.
• E)The state government buys computer time.

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Definitions:

Deferred Tax Note

An explanatory note in financial statements detailing the amounts and causes of deferred tax assets and liabilities.

Earnings Quality

An assessment of the degree to which reported income provides accurate information about a firm's true income generation and sustainability.

Effective Income Tax Rate

The average percentage of their pre-tax income that individuals or corporations pay in taxes.

Economic Changes

Variations or shifts in the economic environment that can affect the performance and strategies of businesses.