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    Question

    Which of the following should be excluded while

    calculating Gross national Product?
    A Rental incomes Correct Answer Incorrect Answer
    B Interest payments Correct Answer Incorrect Answer
    C Dividends Correct Answer Incorrect Answer
    D Government transfer payment Correct Answer Incorrect Answer

    Solution

    Atransfer paymentis apaymentof money for which there are no goods or services exchanged.Transfer paymentscommonly refer to efforts by local, state, and federal governments to redistribute money to those in need. Transfer paymentsarenotincorporated in the Gross National Product (GNP) because there are no goods or services offered in return.

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