The accounting identity for the economy's factor payments can be written as ____.
A)GDP = wages + interest + rents + profits
B)GDP = consumption + investment + government + intermediate goods + net exports
C)GDP = wages + interest + rents + net exports
D)GDP = wages + interest + rents + saving + investment

Question

Quizplus · Accepted Answer

The accounting identity for the economy's factor payments is GDP (total output) equals the sum of all factor payments, which include wages, interest, rents, and profits. Therefore, choice A is correct as it includes all of these factors. Choices B, C, and D do not include all the factor payments.

The Accounting Identity for the Economy's Factor Payments Can Be