The Income Approach to Measuring GDP

question 44

Multiple Choice

The income approach to measuring GDP

• A) sums the value at each stage of production plus the value of depreciation.
• B) determines the cost of production, then adjusts it to equal the market value of production.
• C) sums all incomes earned in the United States and makes no other adjustments because other adjustments are not necessary.
• D) measures the cost of producing GDP rather than the market value.

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Definitions:

IFRS

International Financial Reporting Standards are a set of accounting rules and standards developed by the International Accounting Standards Board (IASB) that guide the preparation of financial statements globally.

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