True or false about national income

Exercise and reference answers

Questions

1. Statement is true

   Yes

   Statement

   GDP counts only final goods and services.

2. Statement is true

   No

   Statement

   Intermediate goods are counted again in GDP.

3. Statement is true

   Yes

   Statement

   Depreciation is an accounting concept.

4. Statement is true

   Yes

   Statement

   Net value added subtracts depreciation.

5. Statement is true

   No

   Statement

   GDP is a perfect measure of welfare.

Instructions

Decide whether each statement is true or false.

Explanation