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irga5000
19 days ago
14

Joe and Michelle have a partnership firm. Based on the income-based method of calculating GDP, what category is the income earne

d by their partnership firm a part of?
A) operating surplus
B) employee’s compensation
C) mixed income
D) gross national product
Business
1 answer:
arsen [2.9K]19 days ago
3 0
The correct category is B) employee’s compensation. The income approach for gauging gross domestic product (GDP) starts with the earnings generated (wages combined with rents, interest, and profits) from producing goods and services. Thus, in the context of calculating GDP through the income method, the income that Joe and Michelle earn from their partnership can be classified as B) employee’s compensation.
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