17 Questions
What is the term for the amount of money that an individual or household has to spend or save after income taxes have been deducted?
Disposable Income
Which National Income Accounting method adds up the pretax income generated by individuals and companies in the economy?
Income Method
What is the name of the method that measures national income by adding up the expenditures made by individuals, companies, and the government?
Expenditure Method
Which of the following is a key parameter in determining consumer spending?
Disposable Income
What is the name of the method that measures national income by adding up the net value added to the product at every stage of production?
Product Method
What is the purpose of national income accounting statistics?
To measure the aggregate input and output of an economy
What is the primary focus of national income accounting?
To measure the health of an economy, projected growth, and economic activity
What is the formula for national income accounting equation?
Y=C+I+G+(X–M)
What does Gross Domestic Product (GDP) primarily measure?
The overall health of the economy
Which of the following metrics is NOT determined by national income accounting?
Unemployment Rate
What is the limitation of Gross Domestic Product (GDP) as a measure of the economy?
It can vary by political definition
Which of the following is an important metric determined by national income accounting?
Both A and B
What does national income accounting provide information on?
Trend of economic activity level
What can central banks use national income accounting statistics for?
To vary the rate of interest
What does national income accounting data show?
Contribution of different sectors to economic growth
What can the government use national income accounting data for?
To frame or modify tax rates
What can national income accounting data help explain?
Various social and economic phenomena
Test your knowledge of disposable income, its calculation, and its significance in national income accounting. Learn how it affects consumer spending and the overall economy.
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