Economic Income Components Quiz

Tax refunds are not considered a component of economic income as they represent a return of previously paid taxes rather than a source of income.

Gross Domestic Product (GDP) includes the sum of consumption, investment, government spending, and net exports.

National income accounting is designed to monitor the flow of income and expenditures, providing insights into the economic health of a nation.

Unemployment benefits are not considered part of national income calculations as they represent government transfers rather than earned income.

Social Security benefits are classified as transfer payments, representing payments from the government to individuals without the exchange of goods or services.

Disposable income is calculated by subtracting taxes from gross income, representing the income available for spending or saving.

Net National Income (NNI) accounts for depreciation and provides a measure of the total income earned by residents, businesses, and the government.

Non-market transactions involve activities without a monetary exchange, such as providing services within a family without payment.

Economic income is calculated by subtracting taxes from gross income.

Capital gains in economic income reflect the increase in the value of assets over time.

Depreciation in national income accounting represents the decline in the value of a country's assets over time.

In a closed economy, savings and investment are equal, but they may diverge in an open economy due to international trade.