A
What is net investment?
Additions to the capital stock
What cant be measured to find a country's GDP?
A)Expenditure
B)Income
C)Output
D)Wealth
D)Wealth
What is value added?
The difference between the price at which products are sold and the price of goods and services used in their production
What is not included in net property in income from abroad?
A) Receipts of profit
B) Rent and interest to non residents
C) Tax revenue
C) Tax revenue
What are the measures to avoid counting output twice?
Its done by either totalling the final value of goods and services produced or by adding the value added at each stage of production.
What's gross national disposable income?
GNI plus net transfers of worker's income to their relatives to and from other countries
GDP and GNI is measured by?
market prices and basic prices
What is a MNC?
Firms that operate in more than one country
What is GDP?
The total output produced by an economy
What is market prices and basic prices?
Market prices: Prices paid by consumers; they take into account indirect taxes and subsidies.
Basic prices: Prices charged by producers before the addition of indirect taxes and the deduction of subsidies.
What is circular flow of income?
A simplified view of how income flows around the economy
What is GNI?
what is national income statistics?
measures of the total output (income and expenditure) of an economy
What are the different methods of measuring GDP?
1) The output method, 2) The income method , 3) The expenditure method
Formula for Net national income
Gross national income minus depreciation