Which of the Following Is True of the Expenditure-Based Method

question 119

Multiple Choice

Which of the following is true of the expenditure-based method of national accounting?

• A) It does not track the purchase of services by households.
• B) It does not track the purchase of goods and services by the government.
• C) It tracks the purchase of investment goods by firms and households.
• D) It only tracks the purchase of goods and services by the government.

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Definitions:

Tax Revenue

Government income obtained from taxation.

Payroll Tax

Duties levied on employees or the companies that employ them, computed as a percentage of the remuneration the employees are given.

Wages

The fixed regular payment, typically calculated on an hourly, daily, or piecework basis, made by an employer to an employee, especially to manual or unskilled workers.

Tax Burden

The total amount of tax paid by individuals or businesses, often expressed as a percentage of income or GDP.