Asked by
Jessica Starring
on Nov 16, 2024Verified
Since transfer payments by government are not associated with the production of goods and services, they are not included in GDP.
Transfer Payments
Payments made by the government to individuals, without any expectation of a direct return or exchange of goods or services.
GDP
Gross Domestic Product; a measure of the economic performance of a country, representing the total value of all goods and services produced over a specific time period.
- Perceive the essence of Gross Domestic Product (GDP) and its component parts.
- Identify what expenditures are included and excluded in GDP calculations.
Verified Answer
MS
Learning Objectives
- Perceive the essence of Gross Domestic Product (GDP) and its component parts.
- Identify what expenditures are included and excluded in GDP calculations.