ECONOMICS
GDP
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
All spending on final products in the year.
|
|
|
All Income made from selling all final goods.
|
|
|
All costs on all products.
|
|
|
The ammount of people involved in production.
|
Detailed explanation-1: -The income approach to calculating gross domestic product (GDP) states that all economic expenditures should equal the total income generated by the production of all economic goods and services.
Detailed explanation-2: -The income approach consists of summing all the factor, or primary, incomes earned in the production process plus taxes less subsidies on products. More generally, this consists of the earnings resulting from the use of labour and capital in the production of goods and services during an accounting period.
Detailed explanation-3: -The expenditure approach to calculating gross domestic product (GDP) takes into account the sum of all final goods and services purchased in an economy over a set period of time. That includes all consumer spending, government spending, business investment spending, and net exports.
Detailed explanation-4: -Government and household interest payments are not included in the national income. Profits (PR): The amount firms have left after paying their rent, interest on debt, and employee compensation. GDP calculation involves accounting profit and not economic profit.
Detailed explanation-5: -Measuring GDP. GDP measures the monetary value of final goods and services-that is, those that are bought by the final user-produced in a country in a given period of time (say a quarter or a year). It counts all of the output generated within the borders of a country.