The Factor Income Approach to Calculating GDP Can Be Summarized

question 51

Multiple Choice

The factor income approach to calculating GDP can be summarized as the summation of

• A) consumption, investment, government purchases, and exports.
• B) consumption, investment, government purchases, and net exports.
• C) wages, interest, rent, and profit.
• D) wages, investment, rent, and profit.

---

Definitions:

Potato Chips

Thin slices of potato that are fried or baked until crispy and often flavored.

Income Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in consumers' income.

Steak

A slice of meat, typically beef, cooked by grilling, frying, or broiling, and served as a main dish.

Hamburger

A popular food item consisting of cooked ground meat, usually beef, placed inside a sliced bun, often accompanied by various toppings.