Asked by Ritvik Rekhi on May 26, 2024
Verified
Which of the following is included as government purchases in gross domestic product (GDP) ?
A) Social Security payments to elderly citizens
B) Welfare benefits distributed to the poor
C) Outright grants from government to recipients
D) Payments to clerical workers hired by government
E) Unemployment compensation benefits
Government Purchases
Expenditures made by the government for goods and services that directly satisfy public needs or initiate government activities.
Social Security
A government program that provides pensions, disability insurance, and benefits to retirees, their dependents, and disabled workers.
Welfare Benefits
Government-provided assistance programs aimed at supporting the well-being of individuals and families in need.
- Comprehend the contribution of government expenditures, international trade balance, and investments towards the computation of Gross Domestic Product.
Verified Answer
NH
Nor Hafiz BahariMay 28, 2024
Final Answer :
D
Explanation :
Government purchases in GDP include payments made directly by the government for goods and services, such as payments to clerical workers hired by the government. Social Security payments, welfare benefits, outright grants, and unemployment compensation benefits are not considered government purchases in GDP.
Learning Objectives
- Comprehend the contribution of government expenditures, international trade balance, and investments towards the computation of Gross Domestic Product.