National Income Accountants Can Avoid Multiple Counting By

question 145

Multiple Choice

National income accountants can avoid multiple counting by:

• A)including transfers in their calculations.
• B)counting both intermediate and final goods.
• C)only counting final goods.
• D)only counting intermediate goods.

---

Definitions:

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, elasticity being greater when a small price change causes a large change in quantity demanded.

Consumption

The use of goods and services by households, contributing to their living standards and economic activity.

Midpoint Formula

A method used in economics and statistics to calculate the elasticity of a variable, or the percentage change in one variable in response to a percentage change in another.

Price Elasticity

A measure of how much the quantity demanded or supplied of a good changes in response to a change in its price, indicating sensitivity to price changes.