Why are transfer payments excluded from government expenditure in the national income accounts?
What will be an ideal response?
Given the definition of GDP, only expenditures related to the current production of goods and services are included in the national income accounts.
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Monopolistically competitive firms achieve allocative efficiency but not productive efficiency
Indicate whether the statement is true or false
Maurice can drive or fly from Jacksonville, Florida to Atlanda, Georgia, for a one-day business trip. If he drives, he will be able to work three hours once he arrives in Atlanta, whereas traveling by plane will enable him to work eight hours. His expected income from each hour of work in Atlanta is $30 . If Maurice is a rational decision maker, he will fly if and only if the price differential
(air cost minus driving cost) is less than a. $30. b. $90. c. $150. d. $240.