The Four Categories of Expenditure Used by the Expenditure Approach

question 52

Multiple Choice

The four categories of expenditure used by the expenditure approach method to calculate GDP are

• A)saving, taxes, government expenditure and investment.
• B)consumption expenditure, investment, net imports and saving.
• C)consumption expenditure, investment, government expenditure and net exports.
• D)consumption expenditure, taxes, saving and investment.

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Definitions:

Brym And Lie

Authors known for their contributions to the field of sociology, often referenced for their work in textbooks and academic research.

Exchange Theory

A sociological and psychological theory that analyzes social interactions as transactions where individuals seek to maximize rewards while minimizing costs.

Dramaturgical Analysis

Dramaturgical analysis is a perspective in sociology that interprets social interactions as if they were part of a theatrical performance, where individuals manage impressions in front of others.

Rational Choice Theory

A framework in social sciences that explains individual behavior as the outcome of rational decisions made by individuals aiming to maximize their benefits and minimize their costs.