5 Questions
What is the difference between Gross National Product (GNP) and Gross Domestic Product (GDP)?
GNP measures the value of final goods and services produced by a nation's factors of production, while GDP measures the final value of goods and services produced within a country.
What is National Saving (S)?
National income not spent on consumption or government.
What is Private Savings (SP)?
Disposable income less consumption and taxes.
What is Government Savings (SG)?
Net tax revenue minus government purchases.
What is the Balance of Payments Accounts?
Accounts that include Current, Financial, and Capital Accounts.
Study Notes
- National Income Accounts record national income from production and expenditure
- Gross National Product (GNP) measures the value of final goods and services produced by a nation's factors of production
- GNP can be adjusted for depreciation and unilateral transfers
- Gross Domestic Product (GDP) measures the final value of goods and services produced within a country
- National Saving (S) is national income not spent on consumption or government
- Private Savings (SP) is disposable income less consumption and taxes
- Government Savings (SG) is net tax revenue minus government purchases
- Balance of Payments Accounts include Current, Financial, and Capital Accounts
- The sum of the Current, Financial, and Capital Accounts equals zero
- Examples of transactions in the Current and Financial Accounts were provided.
Test your knowledge on national income accounting with this quiz! Learn about key concepts such as Gross National Product, Gross Domestic Product, national saving, and balance of payments accounts. Practice your skills in calculating and understanding different types of income and expenditure. This quiz includes examples of transactions in various accounts to help you solidify your understanding.
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