9 Questions
Which of the following best describes economic activities?
Activities producing goods and services exchanged in market transactions
What is the key characteristic of non-economic activities?
They do not command any market value
Why is it important to express national income in monetary terms?
To avoid double counting and measure the total value of production accurately
What type of goods are included in the calculation of national income?
Only final goods and services, excluding intermediate products
How do intermediate goods differ from final goods?
Final goods are used as input into further stages of production
Why is it important to exclude intermediate goods from national income calculation?
To avoid overestimating the total production value
Which statement accurately defines national income?
$1000 + $1500 + $100000
What happens if intermediate products are included in the calculation of national income?
National income will be understated
"Which of the following is NOT a reason why National Income is expressed in monetary terms?"
To count all goods and services produced during a year only once
Explore the basics of National Income in macroeconomics, including concepts like Aggregate Output, Total Employment, Savings and Investment, Aggregate Demand, and more. Understand how National Income is a key indicator of a nation's economic performance.
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