Using the Resource Cost-Income Approach, Indirect Business Taxes Have to Be

question 121

Multiple Choice

Using the resource cost-income approach, indirect business taxes have to be added to get gross domestic product because the

• A) selling price of a product includes these taxes, which are income to the government .
• B) selling price of a product includes these taxes, which are resource payments.
• C) selling price of a product excludes these taxes and therefore they have to be added.
• D) selling price includes these taxes which are actually not income to any sector of the economy.

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Definitions:

Product Availability

The extent to which goods or services can be purchased or accessed as desired by customers at a given time.

Customer Purchases

Transactions where consumers buy goods or services from businesses, exchanging money for products.

Excessive Inventory

A larger amount of stock than what is needed, leading to unnecessary storage costs and potential obsolescence.

Demand Volatility

The degree to which demand for a product or service can fluctuate unpredictably over a certain period, affecting supply chain and inventory management strategies.