Question

Please select the GDP calculation method that best fits each of the given definitions. This method takes into account payments received by the various factors of production used to produce final goods and services in the economy.

Answer 1

income approach

Step-by-step explanation:

The income approach method for calculating the GDP adds the factor incomes to the factors of production. It uses an approach similar to general accounting procedures since the total amount of the expenditures = total income. It divides the economy into four major factors of production or sources: wages, rents, interest and profits.