ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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worker’s wages
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money paid for the use of land
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the remaining income after all expenses have been paid out
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money paid to people that lend money to the business
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Detailed explanation-1: -The income approach to calculate gross domestic product (GDP) sums the compensation of employees, taxes on production and imports less subsidies on production, gross operating surplus and mixed income.
Detailed explanation-2: -Interest Income (i): Income received by households through the lending of their money to corporations and business firms. Government and household interest payments are not included in the national income.
Detailed explanation-3: -The income approach estimates gross domestic product (GDP) as the sum of income generated by the domestic production of goods and services. The income approach is one of the three different but equivalent ways of measuring GDP. The other two approaches are the production and expenditure approaches.
Detailed explanation-4: -The four components of gross domestic product are personal consumption, business investment, government spending, and net exports. 1 That tells you what a country is good at producing. GDP is the country’s total economic output for each year.