Which of the following is not true about gross domestic product (GDP)?
A)It includes only final goods and services.
B)It reflects production in a particular year.
C)Intermediate goods and services are excluded to prevent double counting.
D)It excludes purchases of financial assets.
E)It includes transfer payments.

Question

Quizplus · Accepted Answer

Transfer payments, such as Social Security and welfare benefits, are not included in GDP as they represent transfers of income rather than actual production of goods or services.

Which of the Following Is Not True About Gross Domestic