The Expenditure Approach Measures GDP by Adding Together

question 98

Multiple Choice

The expenditure approach measures GDP by adding together

• A)wages, salaries and supplementary labour income, and other factor incomes.
• B)wages, salaries and supplementary labour income, other factor income, subsidies paid by the government, indirect taxes paid, and income of nonfarm unincorporated businesses.
• C)compensation of employees, rental income, corporate profits, net interest, proprietors' income, indirect taxes paid, and capital consumption expenditures, and by subtracting subsidies paid by the government.
• D)the total expenditures of consumers, firms, net exporters, and by governments at all levels.
• E)the total expenditures of consumers and firms.

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Definitions:

Anatomical Structures

Structures within an organism that are studied in anatomy, such as bones, muscles, organs, and their arrangements.

Analogy

A comparison between two things, typically for the purpose of explanation or clarification.

Natural Selection

A key mechanism of evolution where individuals with traits better suited to their environment are more likely to survive and reproduce, leading to genetic changes in populations over time.

Reproductive Success

The passing of genes onto the next generation in a way that they too can pass those genes on.