Multiple choice

Which of the following is not, by definition, equal to national income?

  1. National product

  2. National expenditure

  3. National output

  4. National wealth

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

National income is a flow concept measuring the value of goods and services produced during a year. It can be equivalently measured as national product (output approach), national expenditure (expenditure approach), or national income (income approach). National wealth, however, is a stock concept - the accumulated net assets at a point in time - not equal to annual national income.

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