The Income Approach Measures GDP by Summing

question 171

Multiple Choice

The income approach measures GDP by summing

• A)C + I + G + NX.
• B)the total production of all final goods and services produced in a year within a country's borders.
• C)the wealth of households,business and government.
• D)the incomes paid households for the resources they own.
• E)Both answers A and D are correct.

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Definitions:

Expense

Costs or charges incurred in the operation of a business or the execution of a transaction.

RRSP

Registered Retirement Savings Plan, a Canadian investment vehicle for individuals to save for retirement while taking advantage of tax deferrals.

Years

Years are units of time that measure the duration or length of time an event has occurred or is expected to occur, usually related to financial calculations or investments.

Invest

To allocate resources, usually money, with the expectation of generating an income or profit.