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Questions and Answers
What does the expenditure method of calculating national income take into account?
What does the expenditure method of calculating national income take into account?
- Final goods and services produced in a country during a period of time (correct)
- Net exports and imports
- Total investment in the economy
- Total government spending on goods and services
What does the income method of measuring national income include?
What does the income method of measuring national income include?
- Net savings of households and businesses
- Total expenditure on goods and services in the economy
- Pretax income from individuals and companies, including wages, rent, interest, and profits (correct)
- Total government revenue from taxes
In the context of national income measurement, what does 'C' represent in the equation 'Y = C + I + G + (X-M)'?
In the context of national income measurement, what does 'C' represent in the equation 'Y = C + I + G + (X-M)'?
- Government expenditure on goods and services
- Total capital investment in the economy
- Consumption by residents of the nation (correct)
- Net exports of the country
What does the production method of measuring national income consider?
What does the production method of measuring national income consider?
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Which factor is not part of the calculation of national income using the expenditure method?
Which factor is not part of the calculation of national income using the expenditure method?
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