The Department of Commerce Sums the Payments Made to Resources

question 94

Multiple Choice

The Department of Commerce sums the payments made to resources to arrive at GDP in the form of wages, rents, interest, profits, indirect taxes, and depreciation. This method of deriving GDP is called the:

• A)opportunity cost approach.
• B)income approach.
• C)expenditure approach.
• D)monetarist approach.

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Definitions:

Frontal Lobe

One of the four major lobes of the cerebral cortex, associated with reasoning, planning, parts of speech, movement, emotions, and problem-solving abilities.

Hippocampus

A region of the brain that is associated with memory formation, organization, and storage.

Cerebellum

A region of the brain that plays an important role in motor control, coordination, precision, and accurate timing.

Decay Theory

A theory suggesting that memory fades and disappears over time if it is not accessed and used.