13 Questions
Who is the pioneer of the subject of economics mentioned in the text?
Adam Smith
What are the three ways to calculate national income?
Product method, expenditure method, and income method
What are some of the central questions of economics mentioned in the text?
What generates the economic wealth of a nation, what makes countries rich or poor
What does the economic well-being of a country depend on?
The transformation of natural resources through a production process
In the modern economic setting, the flow of production arises out of the production of:
Commodities - goods and services by millions of enterprises
What happens to the commodities after being produced?
They are purchased by consumers for final use
What is an example of a final good?
Article of clothing produced from cloth
Which entity might purchase goods or services for use in further production?
Enterprises for further production
What is the primary factor determining the economic wealth or well-being of a country?
The use of natural resources in generating a flow of production
What is the role of enterprises in the flow of production?
To produce commodities - goods and services
What happens to a final good once it has been sold?
It passes out of the active economic flow
What is meant by 'flow of production'?
The generation of income from commodity production
What determines how economic wealth is generated from the possession of resources?
The transformation process
Learn the fundamental concepts of national income accounting in a simple economy, including the aggregate income calculation and the three methods to calculate national income.
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