The Income Approach to Measuring GDP Is Based on Summing

question 105

Multiple Choice

The income approach to measuring GDP is based on summing

• A)the values of final goods,intermediate goods and services,used goods,and financial assets.
• B)wages,interest,rent and profits.
• C)the production of each industry.
• D)consumption expenditure and wages.
• E)consumption expenditure,investment,government expenditures on goods and services,and net exports of goods and services.

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Definitions:

Units-Of-Output Depreciation

A depreciation method where the expense is based on the number of units produced or the machine's output during the period.

Residual Value

The estimated remaining value of an asset at the end of its useful life, often considered in depreciation calculations and lease agreements.

Estimated Useful Life

The expected period over which an asset is useful to the owning entity and contributes to its income generation.

Delivery Truck

A vehicle used by companies to transport goods, products, or materials from one location to another.