3
QuizMultiple Choice

Economic Measurement

Question 3 • Small Business Entrepreneurship A (IS)

An example of government spending when calculating the GDP using the expenditures approach is _____.

Answer
A
food
B
salaries of public employees
C
construction of a new mine
D
none of the above

Explanation

In the expenditures approach, government spending includes purchases of goods and services by the government, including compensation paid to public employees. Therefore, salaries of public employees are an example of government spending; food is typically household consumption, and a new mine is private investment.

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