The Following Are Examples of Final Goods in National Income

question 66

Multiple Choice

The following are examples of final goods in national income accounting, except:

• A) Lumber and steel beams purchased by a construction company
• B) Tractor purchased by a construction company
• C) Laptop computer purchased by an executive for personal use
• D) Desktop computer purchased by an executive for business use

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Definitions:

M2

An indicator of the monetary base that encompasses cash, deposits in checking accounts, and readily convertible quasi-cash assets.

Money Supply

The collective amount of all financial means in an economy, considering cash, coins, and deposits in checking and savings accounts, at a specific moment.

Backed by Gold

Refers to a currency that is guaranteed by gold reserves, meaning its value is supported by the amount of gold held by the issuing authority.

Paper Currency

Money in the form of paper notes issued by the government or central bank, representing a legal tender for transactions.