The Income Approach to Measuring GDP Sums Together

question 159

Multiple Choice

The income approach to measuring GDP sums together

• A) compensation of employees, rental income, corporate profits, net interest, proprietors' income, subsidies paid by the government, indirect taxes paid, and depreciation.
• B) compensation of employees, rental income, corporate profits, net interest, proprietors' income, indirect taxes paid, and depreciation and subtracts subsidies paid by the government.
• C) the sales of each firm in the economy.
• D) the costs of each firm in the economy and then subtracts indirect business taxes and depreciation.

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Definitions:

Tax Burden

The total amount of tax that individuals, businesses, or specific sectors of the economy bear.

Federal Personal Income Tax

A tax levied by the federal government on the income of individuals, with rates varying based on income levels.

Tax Exemptions

Deductions allowed by law to reduce taxable income, often for specific categories of expenses or investments.

Progressive

Pertaining to a type of tax system where the tax rate increases as the taxable amount or income increases, often aimed at reducing income inequality.