Which of the Following Statements Is True

question 74

Multiple Choice

Which of the following statements is true?

• A)Capital income includes sales taxes paid by businesses to the government.
• B)Capital income includes indirect business taxes.
• C)GDP includes indirect business taxes.
• D)GDP does not include indirect business taxes.
• E)None of these

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Definitions:

Rate of Return

Returns or drawbacks experienced in an investment over an established period, articulated as a percentage of the investment's outlay.

Calculating

The process of determining a quantitative answer or figure through mathematical operations or procedures.

Benchmark Portfolio

A standard or reference by which the performance of a portfolio can be measured or judged.

Passive Strategy

An investment strategy involving minimal buying and selling actions, typically focused on long-term investment in index funds or Exchange-Traded Funds (ETFs).