According to the factor income approach, GDP is the sum of:
A) consumption, investment, government purchases, and exports.
B) consumption, investment, government purchases, and net exports.
C) wages, interest, rent, and profit.
D) wages, investment, rent, and profit.

Question

Quizplus · Accepted Answer

The factor income approach defines GDP as the sum of wages, interest, rent, and profit earned by households and businesses within a country's borders during a specific period of time. Therefore, the correct answer is C.

According to the Factor Income Approach, GDP Is the Sum