Practice Methods Of Measuring National Income (2)

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9 questions

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6 sample questions

Question 1.
What does the Income Method calculate?
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Remember key income sources.
Question 2.
In the Expenditure Method, what does C stand for?
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Think about household spending.
3Question 3.
What does the Income Method focus on?
- Total goods produced
- Total income earned
- Total spending
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Consider what is being counted.
4Question 4.
True or False: The Expenditure Method includes intermediate goods.
- True
- False
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Think about the definition of final goods.
Question 5.
A country's total income is reported as follows: wages total $500 billion, rents are $200 billion, interests $100 billion, and profits are $300 billion. Calculate the National Income using the Income Method.
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Just add the totals for each component.
Question 6.
You are given spending values as follows: Consumption = 4000, Investment = 2500, Government Expenditure = 1500, Exports = 1200, Imports = 800. What is the National Income using the Expenditure Method?
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Use the expenditure formula and remember to subtract imports from exports.

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