Which of the Following Statements About National-Income Accounting Is Correct

question 89

Multiple Choice

Which of the following statements about national-income accounting is correct?

• A)The total value added in the economy is equal to the sum of all components in the circular flow of expenditure and income.
• B)The value of the expenditure on a nation's output is equal to the total income claims generated by producing that output.
• C)GDP on the expenditure side is calculated by adding up all the income claims generated by the act of production.
• D)GDP on the income side is calculated by adding up total expenditure for each of the main components of final output.
• E)GDP from the expenditure side and GDP from the income side differ by the amount of investment in the economy.

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Definitions:

Incarceration Rates

The number of individuals in a population who are confined in prison or jail, usually expressed per 100,000 population.

Non-Hispanic

A term used to refer to individuals or populations who do not identify with Hispanic or Latino ethnic groups.

Entitlements

Programs for which funding is mandatory and guaranteed by law to those who meet eligibility criteria, such as Social Security and Medicare.

Eligible Person

An individual who meets specific criteria or requirements, making them qualified to receive certain benefits, rights, or services.