If We Add Up the Figures for Wages, Rent, Interest

question 39

Multiple Choice

If we add up the figures for wages, rent, interest and profit:

• A)the figure is not equal to the GDP by the expenditure approach because it does not include the amount of investment.
• B)the figure is not equal to the GDP by the expenditure approach because the Canadian national accounts do not reflect each of these four factors of income and also because a few adjustments are necessary.
• C)we obtain a figure which is equal to the GDP by the expenditure approach.
• D)it does not reflect the actual figure for the GDP by the expenditure approach because it does not include the amount of consumption.

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Definitions:

Equilibrium

A state of balance or stability, where different elements are in harmonious or stable proportions.

Tension

The state of being stretched tight, which can refer to physical objects or a psychological state of stress or anxiety.

Nonmotivating

Activities or stimuli that do not provoke interest, excitement, or drive in an individual.

Motives

The reasons or drives behind an individual's actions or behavior.