Which of the following statements is true?

Question

Quizplus · Accepted Answer

The purchase of a new factory is considered as an investment in the economy, therefore, it is counted as a part of the investment sector of GDP. Option A is incorrect as national income is generally less than GDP. Option B is incorrect as government spending is just one of the components of GDP and not the largest sector. Option C is incorrect as Social Security is a transfer payment and is not considered as a part of GDP.

Which of the Following Statements Is True