The expenditure approach values ________ and the income approach values ________.
A) goods and services at market prices; goods and services at factor prices
B) only goods at market prices; only services at factor prices
C) goods and services at market prices; services at factor prices
D) goods and services at factor prices; goods and services at market prices
E) services only at factor prices; goods only at market prices

Question

Quizplus · Accepted Answer

The expenditure approach measures the total spending on all final goods and services produced within a nation in a specific period, valuing them at market prices. The income approach, on the other hand, measures the total income earned by the factors of production (like labor and capital), essentially valuing the production at factor prices.

The Expenditure Approach Values ________ and the Income Approach Values