To Calculate GDP Using the Income Approach, Add

question 204

Multiple Choice

To calculate GDP using the income approach, add:

• A)indirect business taxes and Social Security taxes.
• B)capital depreciation and Social Security taxes.
• C)indirect business taxes and personal taxes.
• D)indirect business taxes and depreciation.
• E)compensation of employees, rents, profits, net interest, indirect business taxes, and depreciation.

---

Definitions:

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating the proportion of fixed costs in a company's cost structure.

Break-Even Point

The level of production or sales at which total revenues equal total costs, resulting in no profit or loss.

R-Squared

A statistical measure representing the proportion of the variance for a dependent variable that's explained by an independent variable or variables in a regression model.

Mixed Cost

A cost that contains both variable and fixed cost elements.