When the Expenditure Approach Is Used to Measure GDP, the Major

question 39

Multiple Choice

When the expenditure approach is used to measure GDP, the major components of GDP are

• A) consumption, investment, indirect business taxes, and depreciation.
• B) employee compensation, rents, interest, self-employment income, and corporate profits.
• C) employee compensation, corporate profits, depreciation, and indirect business taxes.
• D) consumption, investment, government consumption and gross investment, and net exports.

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Definitions:

Ounce

A unit of weight commonly used in the United States and the United Kingdom, equal to one-sixteenth of a pound or approximately 28.35 grams.

Futures Contract

A standardized legal agreement to buy or sell an asset at a predetermined price at a specified time in the future.

Futures Contract

A futures contract is a standardized legal agreement to buy or sell a particular commodity or financial asset at a predetermined price at a specified time in the future.

Coffee

A brewed drink prepared from roasted coffee beans, which are the seeds of berries from the Coffea plant.