Question Details

Which of the following is included in government expenditures when measuring GDP 



1) Which of the following is included in the government expenditure component of the
expenditure approach to GDP?
A) state government expenditure on local schools
B) transfer payments
C) changes in inventories
D) taxes
2) Which one of the following transactions in a particular year is included in gross domestic
product for that year?
A) Social Security payments to retirees
B) The government pays a computer services company that assisted in the delivery of Social
Security payments to retirees.
C) A car is produced in the previous year and remains in inventory for the entire year under
consideration.
D) A stay-at-home parent performs housework that the family would otherwise have paid a
maid $20,000 a year to perform.
3) Which of the following is included in government expenditures when measuring GDP ?
A) Social Security payments
B) unemployment compensation payments
C) pension payment made to past presidents
D) the current presidentʹs salary
4) Transfer payments
A) are included in the government expenditure category in gross domestic product.
B) refer to all payments made to households by governments.
C) refer to payments made by the government that are not made to purchase a good or
service.
D) are made by households to firms in exchange for goods and services.
5) In the computation of GDP, social security payments count as
A) transfer payments and are included in GDP.
B) transfer payments and are not included in GDP.
C) government expenditure on goods and services and are included in GDP.
D) government expenditure on goods and services and are not included in GDP.




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