The category of "rent" in the income approach to GDP
A)includes the money paid to rent apartments only.
B)includes the money paid to rent machinery only.
C)includes the money paid to use land and other rented inputs.
D)does not have any connection to owner-occupied housing.
E)includes only the imputed rent for owner-occupied housing.

Question

Quizplus · Accepted Answer

The category of "rent" in the income approach to GDP includes the money paid to use land and other rented inputs, such as machinery and equipment. It does not include the imputed rent for owner-occupied housing, which is included in the consumption approach to GDP. Rent for apartments is also included in this category. Therefore, option A is incorrect, while option E is partially correct, as it only includes imputed rent for owner-occupied housing.

The Category of "Rent" in the Income Approach to GDP