The income approach to measuring GDP is based on summing
A) the values of final goods, intermediate goods and services, used goods, and financial assets.
B) the production of each industry.
C) consumption expenditure, investment, government expenditures on goods and services, and net exports of goods and services.
D) wages, interest, rent, and profits.
E) consumption expenditure and wages.
Question 2
In the circular flow model with the government sector, transfers
A) flow only through the goods market.
B) flow in the same direction as do taxes.
C) flow in the opposite direction as do taxes.
D) to firms flow in the same direction as do rent, wages, interest, and profits.
E) to households flow in the same direction as do expenditures on goods and services.
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