The income approach to GDP reveals that compensation of employees (i.e.,wages and salaries)is larger than profits.

Question

Quizplus · Accepted Answer

The income approach to GDP measures the total income earned in an economy. It takes into account compensation of employees (which includes wages, salaries, and benefits) as well as profits earned by businesses. However, in most economies, the total compensation of employees is larger than the total profits earned by businesses, making statement A true.

The Income Approach to GDP Reveals That Compensation of Employees