When Calculating GDP from the Income Side, Which of the Following

question 5

Multiple Choice

When calculating GDP from the income side, which of the following is included in non- factor payments?

• A)income tax
• B)wages and salaries
• C)GST
• D)bond interest
• E)business profits

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Definitions:

Optimum Performance

The most efficient and effective level of functioning of a system or device.

Menu Costs

The costs incurred by firms in order to change their prices, including costs related to printing new menus, re-tagging items, or advertising new prices.

Inflation-induced Tax Distortions

Discrepancies in the effective tax burden caused by inflation, which can lead to distorted investment and consumption decisions.

Shoeleather Costs

Shoeleather costs are the metaphorical costs of inflation, referring to the time and effort spent trying to avoid holding onto cash as it loses value.