National income accounting is defined as the

Question

Quizplus · Accepted Answer

National income accounting is the measurement of aggregate economic activity or the total value of all final goods and services produced in an economy in a given period of time. It provides a framework for measuring and analyzing the performance of an economy. Option A is incorrect as economic theory is used to explain past and present economic activity, not to predict future income. Option C is incorrect as accounting cost only considers the financial costs of economic choices, whereas national income accounting takes into account non-financial costs and benefits as well. Option D is incorrect as distribution of output is a separate analysis that looks at how income is distributed across different groups in an economy.

National Income Accounting Is Defined as the