Using the income method of calculating the GDP of a country, the COE refers to:
A)Consumption of exports
B)Compensation of employees
C)Cycle of economics
D)Cost of exports

Question

Quizplus · Accepted Answer

Using the income method of calculating the GDP of a country, the COE refers to compensation of employees.
Key Takeaway: The income method of calculating the GDP of a country measures all income that is considered in an economic system. Compensation of employees in the form of wages and salaries is a significant component of this calculation in addition to gross operating surplus, gross mixed income, and finally, taxes collected from individuals and corporations minus subsidies.

Using the Income Method of Calculating the GDP of a Country