The Expenditure Approach Measures GDP by Adding

question 7

Multiple Choice

The expenditure approach measures GDP by adding

• A) compensation of employees, rental income, corporate profits, net interest, and proprietors' income.
• B) compensation of employees, rental income, corporate profits, net interest, proprietors' income, subsidies paid by the government, indirect taxes paid, and depreciation.
• C) compensation of employees, rental income, corporate profits, net interest, proprietors' income, indirect taxes paid, and depreciation and subtracting subsidies paid by the government.
• D) consumption expenditure, gross private domestic investment, net exports of goods and services, and government expenditure on goods and services.

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Definitions:

Rosalie Rayner

An American psychologist who, along with John B. Watson, conducted the famous Little Albert experiment, demonstrating that emotional reactions could be conditioned in humans.

Loud Noise

A sound that is high in volume and can possibly cause hearing damage or discomfort.

White Rat

Commonly refers to a breed of domesticated rat, often used in psychological and medical experiments.

Fear

An unpleasant emotion caused by the belief that someone or something is dangerous, likely to cause pain, or a threat.