The Expenditure Approach Measures GDP by Adding

question 247

Multiple Choice

The expenditure approach measures GDP by adding

• A) compensation of employees, rental income, corporate profits, net interest, proprietorsʹ income, subsidies paid by the government, indirect taxes paid, and depreciation.
• B) consumption expenditure, gross private domestic investment, net exports of goods and services, and government expenditure on goods and services.
• C) compensation of employees, rental income, corporate profits, net interest, proprietorsʹ income, indirect taxes paid, and depreciation and subtracting subsidies paid by the government.
• D) compensation of employees, rental income, corporate profits, net interest, and proprietorsʹ income.

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Definitions:

Middle Childhood

A developmental stage in children ranging from about 6 to 12 years old, marked by increased cognitive and social skills.

Concrete Operational

A stage in cognitive development, according to Piaget, where children (around 7-11 years old) start thinking logically about concrete events but struggle with abstract concepts.

Transform Objects

The ability to change or manipulate objects in one's environment, often reflecting cognitive development and creative problem-solving skills.

Piaget

A Swiss psychologist known for his pioneering work in the study of child development, particularly his theory of cognitive development.