What is the basis for calculating a country's national income?

Multiple choice question for Basic of Economics. Select an option, then review the explanation below.

Show Answers

The total tax revenue collected by the governmentThe aggregate income generated from all production factorsThe combined personal earnings of the populationThe net positive balance of exports compared to imports

Explanation

National income is determined by adding up all incomes earned from the factors of production, such as wages, rent, interest, and profits. It is not simply the taxes collected by the government, personal incomes alone, or the trade surplus.

Practice related questions from the same subject.

1.Which of the following best describes deflation?
2.Under what condition can two nations benefit from engaging in international trade?
3.Which of the following represents a legitimate form of currency?
4.Which political ideology is best summarized by the phrase, "From each according to his ability, to each according to his needs"?
5.Which type of currency experiences a decline in its exchange rate due to a continuous balance of payments deficit?

What is the basis for calculating a country's national income?

Explanation

More Basic of Economics MCQs