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21 March, 21:03

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

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  1. 21 March, 23:26
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    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.
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Home » Business » 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 =
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