National Income Accounting

________ is the total payment received by the factors of production

in a country during the year.

• National income

• National flow

• National economics

• National aggregate

National income should be measure by adding ____ to avoid the double counting problem.

• total sales of final and intermediate products

• total sales of intermediate product

• total sales of final product

• total cost of final product

The depreciation value in national income accounting is sometimes referred to as ____.

• net investment.

• net national product.

• change in business inventories.

• the capital consumption allowance.

It is necessary to add ____ to convert GNP factor cost to GNP at market price.

• expenditure on import

• gross trading profits of companies

• indirect taxes and subtract subsidies

• current and capital expenditure by the central government

Disposable personal income can best be defined as ____ .

• the actual income received by households

• income received by household after deducting personal taxes

• income received by resource suppliers for their current contribution to ptoduction

• None of the above

In calculating national income, the construction of a hospital is classified as a(n) ____.

• investment expenditure.

• government expenditure.

• private consumption expenditure.

• None of the above.

Each of the following items is a component of the expenditure approach, EXCEPT ____.

• personal consumption expenditure.

• government expenditure.

• net interest.

• imports.

Each of the following items is a component of the income approach, EXCEPT ____.

• salary/ wages.

• rent.

• net interest.

• imports.