Proprietors' Income Is a Component of Which Approach to Measuring

question 24

Multiple Choice

Proprietors' income is a component of which approach to measuring GDP?

• A) incomes approach
• B) expenditure approach
• C) cost approach
• D) output approach

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Definitions:

Demand

The desire and ability of consumers to purchase goods and services at given prices.

Perfectly Elastic

Describes a situation in economics where the demand or supply for a product can vary infinitely with a small change in price.

Inelastic

A situation in which the demand for a product does not increase or decrease correspondingly with a fall or rise in its price.

Perfectly Elastic

Describes a situation where the quantity demanded or supplied changes infinitely in response to any change in price.