Podcast
Play an AI-generated podcast conversation about this lesson
Download our mobile app to listen on the go
Get App
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?
Signup and view all the answers
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?
Signup and view all the answers
Flashcards are hidden until you start studying
