Double Counting in the Resource Cost-Income Approach to GDP Refers

question 217

Multiple Choice

Double counting in the resource cost-income approach to GDP refers to

• A) corporate income being taxed twice
• B) the amount of income taxes paid to states that is taxable by the federal government
• C) calculating GDP twice using the income and expenditures methods
• D) adding the value of exports to GDP and subtracting the value of imports
• E) counting the total value of a final output in addition to the value of the inputs used to make it

---

Definitions:

Personal Use

Refers to the use of property or services primarily for individual or household purposes, not for business or income-producing activities.

Schedule E

A tax form used by landlords, S-corporation, partnerships, and other entities to report income and expenses from rental real estate, royalties, partnerships, S corporations, trusts, and residual interests in REMICs.

Rental Income

Income received from renting out property, such as buildings or land, which is usually subject to income tax.

Primarily Personal

Indicates the use of property or resource predominantly for the owner's personal purposes and enjoyment rather than for business or rental.