Practice - Methods of Measuring National Income
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Practice Questions
Test your understanding with targeted questions
What does the Income Method calculate?
💡 Hint: Remember key income sources.
In the Expenditure Method, what does C stand for?
💡 Hint: Think about household spending.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What does the Income Method focus on?
💡 Hint: Consider what is being counted.
True or False: The Expenditure Method includes intermediate goods.
💡 Hint: Think about the definition of final goods.
1 more question available
Challenge Problems
Push your limits with advanced challenges
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.
💡 Hint: Just add the totals for each component.
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?
💡 Hint: Use the expenditure formula and remember to subtract imports from exports.
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