One reason the total sum of the income categories does not equal GDP is that
A) taxes are generally larger than subsidies and the depreciation of capital is negligible.
B) GDP values goods and services at retail prices and the income approach values them at wholesale cost.
C) people do not spend all their income, so the value of consumption expenditure is less than the value of wages.
D) GDP does not include depreciation, which is part of the income categories.
E) GDP values goods and services at market prices and the income approach values them at factor cost.
E
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The high-growth Asian economies focused their education spending on the university level to better develop high technology workers
Indicate whether the statement is true or false
In a simple circular-flow diagram, firms
a. purchase resources from households. b. purchase the output produced by households. c. receive income by selling resources to households. d. All of the above are correct.