Which of the following will be included in the calculation of GDP using the income-based method?
A) The earnings from the sale of an old house
B) The money paid to a grocer
C) The earnings retained by a corporation
D) The scholarship offered to a student by a university

Question

Quizplus · Accepted Answer

The income-based method of calculating GDP includes all incomes earned by factors of production, such as wages, rents, interest, and profits. The earnings retained by a corporation are considered part of corporate profits, which are included in GDP.

Which of the Following Will Be Included in the Calculation