The Department of Commerce Sums the Payments Made to Resources

question 208

Multiple Choice

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

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

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Definitions:

Annual Annuity

A series of equal payments made at regular intervals over a period of one year.