When using the income approach to measure GDP at market prices, in addition to summing all factor incomes it is necessary to

To calculate GDP under the income approach, in addition to summing all factor incomes, it is necessary to add indirect taxes and substract subsidies, and it is also necessary to add depreciation expense of capital goods.

In the case of the addition of taxes and substraction of subsidies, this is done in other to get from factor prices, to market prices, since GDP is based on the latter, not on the former.

A depreciation is added in order to get from net domestic product (NDP) to Gross Domestic Product (GDP).

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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