Social The National Income Account

Question 1

Considers the income from different sectors of the economy. An investor uses market sales of comparable sectors for choose a capitalization rate. An investor uses the selling prices of similar condos when valuing his condo

Answer 1

Income Approach

Question 2

Accounts for the return on the factors of production

Answer 2

Total National Income

Question 3

Covers any indirect taxes related to business and depreciation of assets. Cash moving into and out of a business at a specific point of time

Answer 3

Business Cash Flow

Question 4

It include sales and excise taxes. A tax that can be passed onto the customers by being added into a higher price

Answer 4

Indirect Business Taxes

Question 5

It is the Adding net foreign factor income to the income approach

Answer 5

Gross National Income (GNI)

Question 6

Is the difference of payments received from foreigners and payments made to foreigners for the use of factors of production. It is the income produced by citizens of country A working abroad minus the income produced by foreign workers in country A

Answer 6

Net Foreign Factor Income

Question 7

Considers the value added in each stage of the production process, which is computed as the difference of production inputs and the price of output. Summing the gross value added of all industries. The output is determined first then the goods that were used in in the process of generating the output

Answer 7

Production Approach/Value-Added Approach

Question 8

National income represents the total income derived from total output or aggregate expenditure, which corresponds to the total expenses associated with production

Answer 8

AD Curve

Question 9

Determines the equilibrium level of real GDP by the point where the total or aggregate expenditures in the economy are equal to the amount of output produced

Answer 9

Keynesian Cross Diagram

Question 10

Is plotted in the x-axis and is represented by real GDP and is denoted by Y

Answer 10

Actual Expenditure

Question 11

Is plotted on the y-axis and is represented by aggregate expenditure and is denoted by AE

Answer 11

Planned Expenditure