Asked by Christian Mirakaj on May 26, 2024
Verified
The national income accounting system measures economic activity based on the concept of _____.
A) absolute advantage of different industries in an economy
B) the circular flow of precious metal and money through the different sectors of an economy
C) comparative advantage of different industries in an economy
D) the circular flow of output and income through the different sectors of an economy
E) the circular flow of labor and other resources through the different sectors of an economy
National Income Accounting
A system that records a country's economic transactions and measures its economic performance.
Circular Flow
An economic model that depicts how money moves through the economy, from production to income to consumption and back to production.
- Master the idea and mathematical estimation of Gross Domestic Product (GDP) and its criticality in determining economic health.
- Master the ideas concerning depreciation and the structure of national income accounting, including the Net Domestic Product (NDP).
Verified Answer
CG
Calvin Gerald Wilson Sr.May 28, 2024
Final Answer :
D
Explanation :
The national income accounting system measures economic activity based on the circular flow of output and income through the different sectors of an economy. This includes measuring gross domestic product (GDP), which is the total value of goods and services produced within a country's borders in a given time period, as well as other measures of economic activity such as the national income, savings, and investment. Choices A, B, C, and E are not accurate descriptions of the national income accounting system.
Learning Objectives
- Master the idea and mathematical estimation of Gross Domestic Product (GDP) and its criticality in determining economic health.
- Master the ideas concerning depreciation and the structure of national income accounting, including the Net Domestic Product (NDP).