When Measuring GDP by the Income Approach, Wage Income Includes

question 188

Multiple Choice

When measuring GDP by the income approach, wage income includes i) health-care insurance paid for by the firm for its employees.
Ii) Social Security contributions made by the firm.
Iii) wages paid during a worker's vacation time.

• A)i, ii and iii
• B)i and ii only
• C)i only
• D)ii only
• E)ii and iii only

Distinguish between direct and indirect materials costs.

Describe the three major categories of manufacturing costs.

Understand the purpose and components of a manufacturing statement.

Identify costs not included in factory overhead.

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Definitions:

Corporate Equity

The ownership interest represented by shares of a company's stock.

Net Worth

The total assets minus total liabilities of an individual or company, indicating financial health.

Liabilities

Financial obligations or debts owed by a company or individual.

Commercial Banks

Financial institutions that provide various financial services, including accepting deposits, offering business and personal loans, and other investment products.