Which Approach to Calculating GDP Best Highlights the Relative Importance

question 80

Multiple Choice

Which approach to calculating GDP best highlights the relative importance of different factors of production?

• A) The expenditure approach
• B) The income approach
• C) The value-added approach
• D) Any of these measurements would work equally well for that comparison.

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Definitions:

Folkway

Socially accepted norms or patterns of behavior that, while not moral imperatives or laws, guide everyday interactions and practices within a culture.

Sanction

A threatened penalty for disobeying a law or rule, or an official approval or endorsement of an action.

Informal Norm

Unwritten and unofficial rules and behaviors that are understood and followed by members of a society without formal instruction.

Formal Sanctions

Official and authorized penalties or rewards imposed by a governing body or institution to enforce rules or laws.