The Income Approach to Calculating GDP Includes Compensation of Employees

question 202

Multiple Choice

The income approach to calculating GDP includes compensation of employees plus

• A) corporate profits and rental income.
• B) national income and government expenditures.
• C) net interest and net exports.
• D) rental income and net exports.

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Definitions:

Minimax Principle

A strategy in decision-making and game theory aimed at minimizing potential losses while maximizing potential gains.

Similarity Principle

The psychological theory that people are attracted to others who are similar to themselves in various aspects.

Tend-And-Befriend Responses

A behavior exhibited under stress, especially by females, to seek out social alliances and nurture rather than engage in fight or flight.

Western Cultures

A term used to describe societies and nations characterized by values, traditions, and institutions including democracy, individual rights, and the scientific method, largely rooted in European history.