After calculating net domestic product at factor cost, to calculate GDP using the income approach, in part we must add
A) interest, rent, and profit.
B) wages.
C) indirect taxes and depreciation.
D) net operating surplus.
E) subsidies.
C
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What are cover and commodity charges?
Exhibit 5-10 GDP data (billions of dollars) Indirect business taxes$ 600 Depreciation950 Change in business inventories50 Compensation of employees5,400 Corporate profits700 Durable goods600 Exports100 Social Security taxes360 Transfer payments300 Fixed investment950 Government spending800 Imports150 Net interest500 Nondurable goods2,000 Personal taxes1,000 Rental income200 Services4,000 In Exhibit 5-10, and using the income approach, GDP equals
A. $8,350 billion. B. $9,710 billion. C. $5,400 billion. D. $8,400 billion.
Recall the Application regarding the elasticity of demand for public transit varying over time to answer the following question(s).According to the Application, the demand for public transit in the long run is ________, so a 10 percent increase in the transit fare will decrease ridership by ________.
A. 0.80; 8 percent B. 0.60; 6 percent C. 0.50; 5 percent D. 0.7; 7 percent
The music production industry is an example of a(n) ________ industry.
A. perfectly competitive B. monopolistic C. oligopolistic D. monopolistically competitive