Unemployment Compensation Is

question 168

Multiple Choice

Unemployment compensation is

• A)part of GDP because it represents income.
• B)part of GDP because the recipients must have worked in the past to qualify.
• C)not part of GDP because it is a transfer payment.
• D)not part of GDP because the payments reduce business profits.

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Definitions:

Discounted Payback

is a capital budgeting method that calculates the period of time required for the discounted cash flows from a project to recoup its initial cost.

Wholesale Book Outlet

A distributor that sells books in large quantities at discounted prices, primarily to retailers, libraries, and educational institutions.

Sit-down Restaurant

A dining establishment where customers are seated and served by waitstaff, offering a more formal dining experience compared to fast-food or counter-service restaurants.

Net Present Value

A financial metric that calculates the present value of the expected equity of cash flows, considering the time value of money.