non-income expense items included in the GDP calculation include
A)depreciation and indirect business taxes.
B)depreciation and corporate profits.
C)corporate profits tax and indirect business taxes.
D)indirect business taxes and corporate profits.

Question

Quizplus · Accepted Answer

Non-income expense items included in the GDP calculation are depreciation and indirect business taxes. Depreciation is the loss of value of machinery, equipment, and buildings due to wear and tear, while indirect business taxes are taxes that businesses pay to the government, such as sales taxes, property taxes, and license fees. These expenses are subtracted from the gross domestic product to arrive at the net domestic product. Corporate profits tax and corporate profits are income items, not non-income expense items.

Non-Income Expense Items Included in the GDP Calculation Include