Which of the following will be included in the calculation of GDP using the income-based method of national accounting?
A) A worker's retirement benefits
B) A firm's expenditure on raw materials
C) A consumer's expenditure on an imported car
D) A student's expenditure on education

Question

Quizplus · Accepted Answer

Retirement benefits are a form of income and will therefore be included in the calculation of GDP using the income-based method.

Answer: B
 A firm's expenditure on raw materials is a form of investment and will therefore be included in the calculation of GDP using the income-based method.

Answer: D
 A student's expenditure on education is a form of investment in human capital and will therefore be included in the calculation of GDP using the income-based method.

Therefore, the correct answer is ABD.

Which of the Following Will Be Included in the Calculation