Proprietors' Income Is a Component of Which Approach to Measuring

question 311

Multiple Choice

Proprietors' income is a component of which approach to measuring GDP?

• A) output approach
• B) incomes approach
• C) cost approach
• D) expenditure approach

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Definitions:

Consumer Surplus

Difference between what a consumer is willing to pay for a good and the amount actually paid.

Producer Surplus

The difference between the amount producers are willing to accept for a good or service versus what they actually receive.

Negotiated Price

A final price which is agreed upon by both the buyer and seller after a process of negotiation.

Cooperative Game

Game in which participants can negotiate binding contracts that allow them to plan joint strategies.