Why Are Transfer Payments Excluded from the Government Component (G_a)in

Multiple Choice

Why are transfer payments excluded from the government component (G_a) in the calculation of GDP?

A) Because they do not represent the purchase of a good or a service.
B) Because they are not counted as income by any economic agent.
C) Because they do not generate additional income in the economy.
D) Because it is difficult to assess the market value of a transfer payment.
E) Because they are small enough to ignore when computing the national accounts.