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:

Foreclosure

Erikson’s term for premature identity formation, which occurs when an adolescent adopts their parents’ or society’s roles and values wholesale, without questioning or analysis.

Adolescence-Limited Offender

denotes individuals who engage in criminal or antisocial behavior primarily during their teenage years, typically desisting as they enter adulthood.

Drug Abuse

The misuse of drugs or substances in a manner that deviates from the prescribed medical guidelines or societal norms, often leading to addiction and adverse health effects.

Identity Crisis

A time marked by ambiguity and bewilderment, where someone's self-identity feels unstable, usually because of modifications in their anticipated societal positions or objectives.