After calculating net domestic product at factor cost, to calculate GDP using the income approach, in part we must add
A)wages.
B)subsidies.
C)net operating surplus.
D)indirect taxes and depreciation.
E)interest, rent, and profit.

Question

Quizplus · Accepted Answer

To calculate GDP from net domestic product at factor cost using the income approach, we need to add indirect taxes and depreciation. This adjusts for the difference between factor cost and market prices, and accounts for the consumption of fixed capital.

After Calculating Net Domestic Product at Factor Cost, to Calculate