-When using the income approach to estimate Gross Domestic Product (GDP), which of the following would NOT be included?
A) the implicit rental value of owner-occupied housing
B) proprietors' income
C) personal consumption expenditures
D) net interest received by households

Question

-When using the income approach to estimate Gross Domestic Product (GDP), which of the following would NOT be included?
A) the implicit rental value of owner-occupied housing 
B) proprietors' income 
C) personal consumption expenditures 
D) net interest received by households

Quizplus · Accepted Answer

The income approach to estimating GDP focuses on summing up all incomes earned by factors of production in the economy, including wages, rents, interest, and profits. Personal consumption expenditures, however, are a measure of spending by households on goods and services, which is not an income component but rather part of the expenditure approach to calculating GDP.

-When Using the Income Approach to Estimate Gross Domestic Product