In using the income approach to GDP,the largest category is:
A) corporate profits.
B) compensation of employees.
C) rental income.
D) proprietors' income.

Question

Quizplus · Accepted Answer

The income approach to GDP measures the total income earned in production, including wages, salaries, and other compensation for employees. This category typically represents the largest portion of GDP because a significant portion of the economy's output is in the form of employee compensation. While the other categories listed - corporate profits, rental income, and proprietors' income - are important components of the income approach, they are generally smaller in comparison to employee compensation.

In Using the Income Approach to GDP,the Largest Category Is