Transfer payments by the government are not included in the net domestic product because :
Transfer payments do not correspond to current production of goods or services. They redistribute income without purchasing newly produced output, whereas government…
Choose your answer
Transfer payments by the government are not included in the net domestic product because :
Answer and explanation
Correct answer A
Transfer payments do not correspond to current production of goods or services. They redistribute income without purchasing newly produced output, whereas government salaries compensate employees for services provided.
Practice for these exams
-
Himachal Pradesh SET (HP SET)