1.2 - Importance of National Income
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Practice Questions
Test your understanding with targeted questions
What is the definition of national income?
💡 Hint: Think about what gets counted and the time period.
Why do we measure final goods and services?
💡 Hint: Is double counting good for measuring output?
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Interactive Quizzes
Quick quizzes to reinforce your learning
What does national income measure?
💡 Hint: Consider what gets counted in economic output.
True or False: National income only includes domestic production.
💡 Hint: Think about what foreign income sources are considered.
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Challenge Problems
Push your limits with advanced challenges
If a country has a national income of $1 trillion and includes income from abroad amounting to $100 billion, what is the domestic national income?
💡 Hint: Subtract the foreign income from the total to find what’s generated locally.
Analyze how national income can inflate without real economic growth. What factors could lead to this scenario?
💡 Hint: Consider the different contributors to national value.
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