How Does the Income Approach to Measuring GDP Compare to the Production

question 79

Multiple Choice

How does the income approach to measuring GDP compare to the production and expenditure approach to measuring GDP?

• A) It is lower, because some of the revenue from selling goods goes back into the production of more goods.
• B) It is the same, because all revenues are either payed to workers at the company or to the owners of the company.
• C) It is higher, because there are multiple stages along the production process where income is earned.
• D) It is higher if the economy is in a time of strong economic growth, and it is lower in times of recession.

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Definitions:

Temporal

Temporal pertains to time, including its measurement, its passage, and the sequencing of events.

Frontal

Pertaining to the front part of something, especially referring to the frontal lobe of the human brain, which is involved in executive functions such as decision making.

Spoken Language

A system of communicating using sounds, words, and grammar verbally to convey meaning and express ideas.

Wernicke's Area

is a region of the brain associated with the understanding of spoken language, located in the temporal lobe.