When using the income approach to measure GDP,the largest share of GDP generally consists of
A)interest income.
B)labor income.
C)indirect taxes.
D)profits.
E) capital income.

Question

Quizplus · Accepted Answer

The income approach to measuring GDP accounts for the sum of all of the income earned by households and firms in the economy. Labor income, which includes wages, salaries, and benefits, tends to be the largest share of GDP under the income approach. This is because it represents the income earned by the largest segment of the population, as opposed to capital income, which is earned by a smaller group of individuals who own assets such as stocks, bonds, and property.

When Using the Income Approach to Measure GDP,the Largest Share