The Department of Commerce sums the payments made to resources to arrive at GDP in the form of wages, self-employment income, rents, interest, profits, indirect taxes, and depreciation. This method of deriving GDP is called the
A) opportunity cost approach.
B) resource cost-income approach.
C) expenditure approach.
D) monetarist approach.

Question

Quizplus · Accepted Answer

The method of deriving GDP that involves summing the payments made to resources is the resource cost-income approach. This method computes GDP by adding up all payments made to households and businesses for their resources, including wages, self-employment income, rents, interest, profits, indirect taxes, and depreciation.

The Department of Commerce Sums the Payments Made to Resources