Ask Question
26 January, 15:42

Which of the following correctly describes GDP using the income approach?

A) GDP = Consumption + Gross Investment + Net Exports + Government Purchases

B) GDP = Wages + Rents + Interest + Profits and Losses + National Income

C) GDP = Wages + Rents + Interest + Profits and Losses

D) GDP = National Income + Indirect Business Taxes + Depreciation + Net Foreign Factor Income

+5
Answers (1)
  1. 26 January, 15:52
    0
    The correct answer is D) GDP = National Income + Indirect Business Taxes + Depreciation + Net Foreign Factor Income.

    Explanation:

    The GDP by the income approach is the sum of the Compensation of Employees or payment to workers; Gross Operating Surplus or remuneration to capital (to capital owners); Mixed Income or compensation that does not differentiate the payment to the worker and the capital (for example, self-employed workers); and, taxes less subsidies on production and imports or Net Taxes on products that correspond to the Government.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Which of the following correctly describes GDP using the income approach? A) GDP = Consumption + Gross Investment + Net Exports + ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers