ADDITIONAL EXERCISES

CHAPTER
National Income
11 Accounting

1 Define ‘national income’. Explain the different approaches in calculating national

income.
2 Is national income the best way to measure the well being of a country?
3 What is the difference between intermediate goods and final goods? Give some examples
and explain how this difference contributes to the problem of double counting.
4 Using an example, explain why import is subtracted when calculating gross domestic
product in the expenditure approach.
5 Discuss the strengths and weaknesses of national income data between one country and
another.