Which of the Following Is True Regarding the Measurement of GDP

question 8

Multiple Choice

Which of the following is true regarding the measurement of GDP?

• A)Wages and profit income are used in the income approach to GDP.
• B)Wages and consumption are used in the expenditure approach to GDP.
• C)Consumption and investment are used in the income approach to GDP.
• D)Government expenditure is only counted in the income approach to GDP.
• E)Investment and wages are expenditures,and are therefore are used in the expenditure approach to GDP.

---

Definitions:

Steel

A hard, strong alloy made primarily of iron and carbon, used extensively in construction and manufacturing.

Imports

Goods and services that are brought into a country from abroad for sale.

Price

The amount of money required to purchase a product or service.

Consumer Surplus

The discrepancy between what consumers are prepared and capable of paying for a product or service and what they end up actually paying.