Question Details

Which of the following is NOT part of GDP calculated using the expenditure approach 



1) Which of the following items is NOT part of government expenditure on goods and services in
the GDP accounts?
A) gasoline purchases for government car pools
B) Social Security expenditures
C) new computer hardware for use by the IRS
D) drapes to brighten up the presidentʹs office
2) Transfer payments are not included in GDP because
A) their market value cannot be accurately determined.
B) they do not generate additional income.
C) they are not purchases of goods or services.
D) their value is included in government expenditure.
3) Which of the following transfer payments is included in GDP?
A) Social Security payments
B) welfare payments
C) veteranʹs benefits
D) none of the above
4) Which of the following is NOT part of GDP calculated using the expenditure approach ?
A) General Motorsʹ purchases of new capital equipment
B) expenditures by the federal government for national defense
C) social security payments made to the elderly
D) the purchase of new homes by consumers
5) Transfer payments are not part of government expenditure on goods and services because
transfer payments
A) are not predictable given the nature of their appropriation and allocation.
B) do not represent the purchase of a final good or service.
C) are not always spent on goods produced in the U.S.
D) The premise of the question is incorrect because transfer payments are part of government
purchases of goods and services.




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