1. Another way of measuring GDP is to measure categories of national
a. output b. income
c. resources d. exports
i THINK 1.a or b
weres b
b is income
To determine the correct answer, we need to understand what GDP (Gross Domestic Product) is and how it is measured. GDP is a measure of the total economic output of a country. It represents the market value of all final goods and services produced within a country's borders in a specific time period, typically a year.
In order to measure GDP, we can use either the expenditure approach or the income approach.
1. The expenditure approach measures GDP by summing up the total spending on goods and services in an economy. It includes four main categories of spending: consumption by households (C), investment by firms (I), government spending (G), and net exports (X - M), where X represents exports and M represents imports. So, option a (output) is incorrect, while option d (exports) is only part of the calculation.
2. The income approach measures GDP by aggregating all the incomes generated in the economy during a specific time period. It includes various types of income, such as wages, salaries, profits, rents, and interest. Therefore, option b (income) is correct as it refers to the income approach used to measure GDP.
In conclusion, option b (income) is the correct answer to the question.