Social Security payments to U.S. citizens are considered:
A) transfer payments and are included in GDP.
B) transfer payments and are not included in GDP.
C) income and are included in GDP.
D) income and are not included in GDP.

Question

Quizplus · Accepted Answer

Social Security payments are classified as transfer payments because they involve the redistribution of income from one group to another without any corresponding production of goods and services. Transfer payments such as Social Security payments are not included in GDP because they do not represent the production of goods and services.

Social Security Payments to U.S. Citizens Are Considered