National Income

Question 1

National income

Answer 1

a measure of economic activity over a given period,usually one year.

Question 2

Three methods of calculating nathional income:

Answer 2

• Expenditure Method
• Income Method
• Output method

Question 3

Gross Domestic Product

Answer 3

is a measure of output produced in a country over a period,usually one year,using the factours of production located in the country irrespective of whether the factors of production are locally or foreign owned.

Question 4

Gross National Product

Answer 4

is a measure of output over a given period,usually one year,the output being produced by factors of production owned by nationals of the country irrespective if the factors of productionis located in the country or another country

Question 5

GDP at Factor cost

Answer 5

is the national output for the year measured at prices paid to the factors of production to produce the output and it excludes the effects of indirect cases

Question 6

GDP at market prices

Answer 6

is national output for the year computed by adding together the spending of all sectors and subtracting imports.