Which of the Following Is Not a Component of GDP

question 146

Multiple Choice

Which of the following is not a component of GDP in the expenditures approach?

• A) Government purchases
• B) Workers' wages and other compensation
• C) Gross private domestic investment
• D) The difference between exports and imports

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Definitions:

Trade

The trading of goods, services, or a combination of both among two or more entities, domestically or across borders.

Comparative Advantage

The capability of a person, business, or nation to manufacture a product or provide a service with a smaller opportunity cost compared to rivals.

Absolute Advantage

The capability of a country, entity, or individual to produce a particular good or service more efficiently than others, using the same amount of resources.

Producing

The act of creating goods or services through the combination of labor, capital, and resources, intended for exchange or personal use.