The Income Approach to Measuring GDP

question 50

Multiple Choice

The income approach to measuring GDP

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

Interpret the difference between nominal and effective rates of interest.

Apply the concepts of time value of money to determine the value of annuities and bonds.

Calculate the sustainability of funds and investments over time given specific withdrawal or deposit conditions.

Analyze the costs and benefits associated with different payment plans and financial products.