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: Option D
Related Questions on Managerial Economics
The emphasis of managerial economics is on
A. Bonus theory
B. Normative theory
C. System theory
D. Accounting theory
Which is not the subject of Managerial Economics?
A. Accounting Theory
B. Pricing Decision, Policies and Practices
C. Capital Management
D. Profit Management
Which is not covered under the scope of managerial economics?
A. Profit management
B. Accounting theory
C. Pricing policies
D. Production analysis

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