The income approach to measuring GDP is based on summing
A)the values of final goods,intermediate goods and services,used goods,and financial assets.
B)wages,interest,rent and profits.
C)the production of each industry.
D)consumption expenditure and wages.
E)consumption expenditure,investment,government expenditures on goods and services,and net exports of goods and services.

Question

Quizplus · Accepted Answer

The income approach to measuring GDP adds up the total income earned by households and businesses which includes wages, rent, interest, and profits earned by businesses. Therefore, option B is the correct choice. The other options mentioned do not accurately describe the income approach to measuring GDP.

The Income Approach to Measuring GDP Is Based on Summing