When estimating GDP using the income approach, aggregate income is adjusted by
A. subtracting depreciation.
B. adding depreciation.
C. adding net income earned abroad.
D. subtracting indirect business taxes.
Answer: B
You might also like to view...
Which of the following statements about waste disposal is not true?
A. Raw material that has been used must be recycled or disposed. B. The physical law of conservation of matter dictates that objects like petroleum can be transformed, but cannot simply vanish. C. The simplest way of dealing with waste is through incineration. D. The amount of recycling in the United States and European Union has risen over time.
Kari lives in a country where economic growth has been flat for the past eight years, but the population has increased by 2 percent over this same period. What has most likely happened in Kari’s country?
a. Wages have declined by 2 percent. b. The standard of living has declined. c. The GDP per capita has increased. d. The nation’s production of goods has increased steadily.
Which of the following people is most likely to be classified as "working poor"?
(A) Jim, who is a full-time student with a work-study job in the college library. (B) Carol, a single mother who works 35 hours a week at a job that pays slightly above minimum wage. (C) Jason, who is working part time as a construction worker so he can devote time to starting up a real estate business. (D) Dolores, who has an advanced degree and works 40 hours a week.
Suppose all individuals are identical, and their monthly demand for Internet access from a certain leading provider can be represented as p = 5 - (1/2)q where p is price in $ per hour and q is hours per month. The firm faces a constant marginal cost of $1. If the firm will charge a monthly access fee plus a per hour rate, the monthly access fee will equal
A) $1. B) $5. C) $8. D) $16.