Economics · National Income Accounting
Transfer payments by the government are not included in the Net Domestic Product (NDP) because:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1There may be leakages in such payments
- 2No corresponding production of goods and services has taken place to match such payments✓
- 3They are direct income to the recipients
- 4These are gifts from the government to the recipients
Correct answer
No corresponding production of goods and services has taken place to match such payments
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