Using the resource cost-income approach, indirect business taxes have to be added to get gross domestic product because the
A) selling price of a product includes these taxes, which are income to the government .
B) selling price of a product includes these taxes, which are resource payments.
C) selling price of a product excludes these taxes and therefore they have to be added.
D) selling price includes these taxes which are actually not income to any sector of the economy.

Question

Quizplus · Accepted Answer

Indirect business taxes are included in the selling price of a product and represent income to the government, which is why they must be added to calculate GDP using the cost-income approach.

Using the Resource Cost-Income Approach, Indirect Business Taxes Have to Be