Excluding Indirect Business Taxes and Depreciation, Gross Domestic Income (GDI)

question 162

Multiple Choice

Excluding indirect business taxes and depreciation, Gross Domestic Income (GDI)

• A) is the sum of all income paid to the factors of production.
• B) never equals GDP.
• C) would equal GDP if there was no depreciation.
• D) cannot be computed.

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Definitions:

Output

In economic and production contexts, this refers to the total amount of goods or services produced by a company or economy.

Actual Cost

The true expenditure incurred for manufacturing, operations, or project activities.

Direct Material

Materials directly related to the production of a product, which can be specifically identified as part of the product and form a large part of its manufacturing cost.

Per Pound

A unit of measure used to express the price or cost of a commodity, production materials, or shipping rates based on weight in pounds.