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:

Columbian Exchange

The widespread transfer of plants, animals, culture, human populations, technology, and ideas between the Americas and the Old World following Columbus's voyages.

Tomatoes

Edible, often red, fruit of the plant Solanum lycopersicum, commonly used in cooking and eaten in a variety of ways worldwide.

Peanuts

A legume crop grown mainly for its edible seeds, known scientifically as Arachis hypogaea.

Ritual Sacrifices

Religious or ceremonial acts involving the offering of gifts or the killing of animals or humans to a deity or higher power, intended as a form of worship, appeasement, or thanksgiving.