4 - Limitations of National Income
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Practice Questions
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What are non-market transactions?
💡 Hint: Think of examples around your home.
Define income inequality.
💡 Hint: How does wealth differ among people?
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Interactive Quizzes
Quick quizzes to reinforce your learning
What does National Income fail to account for that can limit its effectiveness?
💡 Hint: Think of aspects of the economy not reflected in market transactions.
True or False: National Income reflects the well-being of all citizens without exceptions.
💡 Hint: Consider how income might be distributed.
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Challenge Problems
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Consider a country that has a significant percentage of its economy in the informal sector. Discuss how this affects National Income measurements and what alternative measures could give a clearer picture of economic health.
💡 Hint: Think about real-life examples of informal work.
Evaluate the implications of environmental degradation on long-term economic growth and how National Income fails to capture these ramifications.
💡 Hint: Consider examples like deforestation and its impacts.
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