The National Income Accounting System Measures Economic Activity Based on the Concept

question 43

Multiple Choice

The national income accounting system measures economic activity based on the concept of _____

• A) absolute advantage of different industries in an economy.
• B) the circular flow of precious metals and money through the different sectors of an economy.
• C) comparative advantage of different industries in an economy.
• D) the circular flow of output and income through the different sectors of an economy.
• E) the circular flow of labor and other resources through the different sectors of an economy.

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Definitions:

Deduction

An amount that is subtracted from an individual's gross income, decreasing the amount of taxable income.

AGI Deduction

Deductions from gross income that occur before calculating the taxable income, specifically affecting the adjusted gross income on a tax return.

Health Insurance

A type of insurance coverage that typically pays for medical, surgical, prescription drug, and sometimes dental expenses incurred by the insured.

Self-Employed

This term describes individuals who work for themselves, either by running their own business or as independent contractors, rather than being employed by someone else.