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Management · Q40

Managerial Economics

Graduate and Post Graduate · Management · question 40

Q40

Transfer payments by the government are not included in the net domestic product because

A.
these are gifts from the government to the recipients
B.
their opportunity cost is zero
C.
such payments may not ultimately reach the recipients
D.
no corresponding production of goods and services has taken place to match the paymerit of such funds
Answer

Answer: Option D

Solution

Answer: Option D
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