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According to the Circular-Flow Diagram, GDP

Question 25

Multiple Choice

According to the circular-flow diagram, GDP

A) can be computed as payments firms make to factors of production plus revenues they receive from the sales of goods and services.
B) can be computed as the revenue firms receive from the sales of goods and services minus the payments they make to factors of production.
C) can be computed as either the revenue firms receive from the sales of goods and services or as revenues they receive from the sales of goods and services.
D) can be computed as the payments firms make to factors of production, but not as revenues they receive from the sales of goods and services.

Correct Answer: