Select the correct text in the passage. Which sentence indicates how mixed income is measured in the GDP?

Gross domestic product (GDP) does not include the income received by other countries. That is, if a company has a subsidiary in China, the income earned from the products created there are not a part of the U. S. GDP. Instead, only income earned in the U. S. can be counted. This includes three items.

The first is the operating surplus, the net income earned by companies in the U. S.

The second is income earned by individuals that work for themselves, that might include money earned for mowing lawns or writing a book.

The final category includes the wages earned from companies in the U. S.

Question

Alyssa

Mathematics

2 March, 19:37

Select the correct text in the passage. Which sentence indicates how mixed income is measured in the GDP?

Gross domestic product (GDP) does not include the income received by other countries. That is, if a company has a subsidiary in China, the income earned from the products created there are not a part of the U. S. GDP. Instead, only income earned in the U. S. can be counted. This includes three items.

The first is the operating surplus, the net income earned by companies in the U. S.

The second is income earned by individuals that work for themselves, that might include money earned for mowing lawns or writing a book.

The final category includes the wages earned from companies in the U. S.

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Answers (1)

Know the Answer?

Graham Gill · Answer 1

The word domestic in GDP is the key to your answer. That means only income that was made in the United States (domestically) can be counted in the GDP.

The sentence you want to pay attention to is

GDP does not include income received by (sic) other countries. This sentence should read

GDP does not include income originating in other countries. No matter how it is written, that is the sentence you want which tells you what not to count.

You can only count income that originated in the United States.

The sentence you want is the last one of the first paragraph.