The Approach to GDP That Sums Compensation of Employees, Rental

question 237

Multiple Choice

The approach to GDP that sums compensation of employees, rental income, corporate profits, net interest, proprietors' income, depreciation, and indirect taxes and subtracts subsidies is the

• A) income approach.
• B) added cost approach.
• C) expenditure approach.
• D) opportunity cost approach.

---

Definitions:

Auto Pollution

Auto pollution refers to the emissions generated by motor vehicles that contribute to air pollution.

Equilibrium Price

Equilibrium price is the price at which the quantity of a good demanded equals the quantity supplied, thus no surplus or shortage exists.

Adverse Selection

A situation in which sellers have information that buyers do not (or vice versa) leading to transactions that favor the party with more information.

Malpractice Insurance

Insurance that provides coverage to physicians and other medical professionals for liability arising from disputed services that result in a patient's injury or death.