Which of the Following Is Included When Using the Expenditure

question 164

Multiple Choice

Which of the following is included when using the expenditure method to measure GDP?

• A) Corporate profits.
• B) Gross private-sector investment.
• C) Capital income.
• D) Net interest on the government debt.
• E) Labour incomE.

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Definitions:

Indirect Labor

Labor costs associated with support work that does not directly contribute to the manufacture of products or the provision of services, such as maintenance and supervisory wages.

Manufacturing Overhead

All indirect costs related to the manufacturing process, including but not limited to utilities, rent, and salaries of support staff.

Direct Labor Cost

An alternate term for direct labor, emphasizing the expense associated with the wages and benefits paid to production workers.

Manufacturing Overhead

Indirect factory-related costs that are incurred when a product is manufactured, including costs related to maintenance, utilities, and equipment depreciation.