One Reason the Total Sum of the Income Categories Does

Multiple Choice

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) people do not spend all their income, so the value of consumption expenditure is less than the value of wages.
C) GDP values goods and services at market prices and the income approach values them at factor cost.
D) GDP values goods and services at retail prices and the income approach values them at wholesale cost.
E) GDP does not include depreciation, which is part of the income categories.